S u m m a r y B u d g e t 9

Summary Budget

OVERVIEW The FY13 Adopted Budget for the City of Boston totals

$2.47 billion, an increase of $71.8 million, or 3.0%, over

the FY12 budget. FY13 recurring revenue growth is

$101.8 million or 4.3%. The FY13 budget does not

include non-recurring revenue.

In FY13, property tax revenue continues to grow

steadily while local receipts and state aid are

gradually recovering with the improving economy.

State aid figures released with the House and Senate

budgets reflect increasing state aid revenues to the

City. The City’s net state aid (revenues minus state

assessments) will increase modestly after several

years of decrease as the state is expected to record its

third consecutive year of revenue growth.

After several years of using stabilization funds and

federal stimulus funds to plug budget gaps, the state

continues to wrestle with a structural budget deficit

currently projected at $1.4 billion for FY13. This gap

will need to be addressed through expenditure

reductions and/or revenue increases.

On the expenditure side, savings in health insurance

costs and the City’s appropriation to the Public Health

Commission (PHC) are offset by increases to schools,

the reserve for collective bargaining and fixed costs.

This Summary Budget section lays out the FY13

budget and discusses trends in each category of the

budget summary table on the following page. An

overview of the City’s revenues is followed by a

detailed look at personnel trends and a review of

major externally funded services. An all-funds budget

is also presented.

NET PROP. TAX LEVY 66.2%

STATE AID 16.3% FINES

2.6%OTHER REVENUE 9.0%

EXCISES 5.9%

FY13 Estimated Revenue

Figure 1

CITY DEPT41.3%

STATE ASSESS7.1%

DEBT SERVICE5.6%

PENSION5.5%

SCHOOLS34.8%

PHC2.7%

OTHER3.0%

FY13 Estimated Expenditures

Figure 2

1 0 S u m m a r y B u d g e t

FY10 FY11 FY12 FY13Actual Actual Budget Budget

REVENUESProperty Tax Levy 1,475.93 1,541.92 1,614.03 1,675.10Overlay Reserve (35.73) (37.35) (38.66) (40.86)Excises 103.42 125.23 131.93 145.23Fines 70.67 65.34 64.44 65.14Interest on Investments 3.18 1.39 1.15 1.00Payments In Lieu of Taxes 34.94 35.50 40.26 42.84Urban Redevelopment Chapter 121A 66.59 70.30 58.36 61.20Misc. Department Revenue 64.48 138.99 49.29 52.59Licenses and Permits 30.56 39.89 33.75 39.48Penalties & Interest 7.96 9.19 7.76 8.81Available Funds 17.08 17.11 17.07 15.00State Aid 413.21 395.20 385.88 401.49Teachers Pension Reimbursement 0.00 0.00 0.00 0.00

Total Recurring Revenue 2,252.29 2,402.71 2,365.24 2,467.01

Budgetary Fund Balance 45.00 27.00 30.00 0.00Non-Recurring Revenue 5.98 0.00 0.00 0.00

Total Revenues 2,303.27 2,429.71 2,395.24 2,467.01

EXPENDITURESCity Departments 1,006.00 1,018.32 1,017.16 1,019.09Public Health Commission 70.00 69.81 72.90 66.21School Department 817.83 821.38 831.47 857.83Reserve for Collective Bargaining 0.00 8.55 10.03 30.12Other Post Employment Benefits 20.00 35.00 35.00 40.00

Total Appropriations 1,913.83 1,953.06 1,966.56 2,013.25

Pensions 108.46 191.86 126.55 136.98Debt Service 125.50 126.66 135.64 137.55State Assessments 141.87 147.70 162.56 174.58Suffolk County 4.45 4.34 3.92 3.92Reserve 0.07 0.19 0.01 0.73

Total Fixed Costs 380.35 470.75 428.68 453.76

Total Expenditures 2,294.18 2,423.80 2,395.24 2,467.01

Surplus (Deficit) 9.09 5.91 0.00 0.00

NOTE: FY11 Misc. Department Revenue and Pension expenses contain a one-time extraordinary amount of $82.0 million.

Numbers may not add due to rounding

CITY OF BOSTONBUDGET SUMMARY

(Dollars in Millions)

S u m m a r y B u d g e t 1 1

The City’s projected revenues provide the basis for

planning FY13 appropriations and fixed costs to

maintain a balanced budget. Selected FY13 budgeted

City revenues compare with FY12 budgeted revenues

as follows: the net property tax levy increases $58.9

million or 3.7%; excises increase $13.3 million or

10.1%; fines increase by $0.7 million or 1.1%; interest

on investments decreases $0.2 million or 13.0%;

payments-in-lieu-of-taxes increase $2.6 million or

6.4%; Chapter 121A revenues increase $2.8 million or

4.9%, miscellaneous department revenues increase by

$3.3 million or 6.7%; and licenses and permits increase

by $5.7 million or 17.0%.

On the expenditure side of the budget, total

appropriations increase by $46.7 million or 2.4% and

fixed costs increase by $25.1 million or 5.9%.

Selected FY13 budgeted appropriations compare with

FY12 budgeted appropriations as follows: City

departments increase $1.9 million or 0.2%, the Boston

Public Health Commission decreases by $6.7 million or

9.2%, and the School Department increases $26.4

million or 3.2%.

FY13 budgeted fixed costs compare with FY12

budgeted fixed costs as follows: pensions increase

$10.4 million or 8.2%; debt service increases $1.9

million or 1.4%; and state assessments increase $12

million or 7.4%.

NOTE: The “Other” category on the FY13 Estimated

Expenditures pie chart (Figure 2) is comprised of

estimated expenditures for the collective bargaining

reserve, other post-employment benefits (OPEB),

Suffolk County, and a required reserve.

REVENUE The FY13 budget is balanced on the following

projections of revenue streams including the property

tax, state aid and other local receipts.

(Note: To ease comparison with other years, all

figures, text, and calculations referring to or including

FY11 departmental revenues will be stated without the

$82 million pension payment made in that year. In

addition, all years prior to FY10 will be stated net of

Teacher’s Pension Reimbursement. See the Financial Management and Statutes and Ordinances sections for

details of these issues).

Property Tax Levy The gross property tax levy has been the City’s most

dependable source of revenue growth during the past

twenty-nine years. Property tax levy growth is

fundamental to the financial health of the City since it

provides two-thirds of all recurring City revenue.

In each year since FY85, the City has increased its levy

by the 2.5% allowable under the limits set forth in

Proposition 2 ½. During these same years, the levy has

also been positively impacted by taxable new value or

“new growth” that is excluded from the levy limit. New

growth is expected to be approximately $20.0 million

in FY13. While not the case in FY13, property tax

growth from new growth has exceeded growth from

the allowable 2.5% increase in 18 of the last 29 years.

The combined effect of the allowable 2.5% increase

and new growth is an average annual gross levy

increase from FY02 through FY12 of $64.1 million or

5.1%, and a projected increase in FY13 of $61.1 million

or 3.8%. The gross property tax levy currently stands at

$1,614.0 million, and is estimated to rise to $1,675.1

million in FY13.

While the total tax levy has continually gone up,

property values in Boston have declined during the

recent tough years in the residential and commercial

real estate markets. FY10 and FY11 were only the first

and second declines in property values recorded in the

City since FY94. In the FY12 market indexed

revaluation as of January 1, 2011, values increased to

$88.5 billion, a $1.7 billion or 2.0% increase.

Given the recent declines in total property values, one

might expect a decrease in residential taxes. Between

FY02 and FY07 the average single-family property tax

increased with property values, rising nearly 78% to

$3,091. During the next two years, the tax fell as

values continued to rise and since it has regained its

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Total Assessed Property Value & Average Single-Family Tax BillFY02 - FY12

Figure 3

1 2 S u m m a r y B u d g e t

upward momentum. In FY12, the average single-family

tax bill increased to $3,305, a 19.7% increase over FY09

(Figure 3).

The percentage of the total tax levy being borne by

residents increased from 36.2% to 38.7% between FY09

and FY12. This shift is due to the larger decrease in

commercial property values in the levy compared to

residential property values. At its lowest point, the

residential levy was 30% of the total levy (Figure 4).

A more detailed discussion of the property tax levy is

provided in the Revenue Estimates and Analysis

chapter of this volume.

STATE AID

The primary sources of aid from the state to

municipalities are education aid and unrestricted

general government aid. The Commonwealth also

distributes aid for libraries and provides some other

reimbursements to municipalities.

State aid has been reduced substantially over the

course of the last two recessions. Since FY02, net

state aid (defined as state aid revenues less MBTA,

charter school tuition, and other assessments) to the

City has been reduced by over $200 million. The City

lost approximately $79 million between FY02 and

FY05, gained approximately $16 million between FY06

and FY08, and has again lost approximately $142

million between FY09 and budgeted FY12 – averaging

a loss of over $35 million per year. The FY13 projection

of a minor increase of $3.6 million brings the total loss

since FY02 to $201.4 million or 47%.

The City’s FY13 state aid estimate is based on the

lower of each line-item in the House and Senate

budgets. A joint House and Senate Conference

Committee budget released in mid-June contains a

similar increase in state aid to the City’s budget

estimate. This Conference Committee budget has

moved to the Governor for any vetoes, which will be

followed by a return of the budget to the Legislature

for any veto overrides before becoming law in early

July.

Education Aid

The City received “Chapter 70” education aid totaling

$217.0 million in FY10, $204.3 million in FY11, and has

budgeted $205.4 million for FY12. The City estimates

a small increase to $207.9 million in FY13.

Current education aid is delivered in tandem with

state-mandated costs for charter schools. Charter

schools are publicly-funded schools administered

independently from local school committees and

teachers’ union rules and regulations. Their charters

are granted by the State Board of Education.

In the current year there are 5,749 Boston resident

students attending “Commonwealth” charter schools.

The City expects that number to rise to approximately

6,647 in FY13 with the addition of eight more charter

schools opening to Boston students. These added

schools are the result of legislation enacted in FY11

that increases the cap on charter schools in low

performing districts. The law also changes the

formula for reimbursement to sending districts for the

annual increase in total Charter School tuition

included in the state assessment.

The net cost to the City for charter schools

(reimbursement from the Commonwealth less tuition

assessment) was $51.0 million and $55.1 million in

FY10 and FY11, respectively. The City has budgeted a

$63.2 million net cost in FY12 and a $71.8 million net

cost in FY13 (see Figure 5). These figures include the

cost of a capital facilities charge that is 100%

reimbursed.

Unrestricted General Government Aid

Beginning in the FY10 budget and going forward, the

Governor and the Legislature combined general

government aid from lottery and “additional

assistance” into one account. The combined accounts

were reduced by $87.0 million or 37.0% of the total

between FY08 and FY12, excluding a one-time

supplemental appropriation from the Commonwealth

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Figure 4

Boston Property Tax TrendsFY03- FY12

Com., Ind. & Pers. Levy (L)Residential Levy (L)Avg Single-Family Tax Bill (R)

S u m m a r y B u d g e t 1 3

totaling $11.5 million received in FY12. The City

expects to receive $148.7 million in FY12 before a one-

time supplemental aid increase of $11.6 million. This

one-time supplemental is expected to become

permanent in FY13, thus raising the amount of this

type of aid to $160.2 million.

Below are explanations of the component revenues.

Lottery Aid

The expected amount of lottery revenue available to

be distributed to cities and towns as local aid has been

in excess of the actual amount available for the past

several years. This is due in part to slowing lottery

sales and optimistic estimates by state budget writers.

The difference has been made up with general state

revenues.

For several years during and after the 2001-2002

recession, the state diverted lottery proceeds meant

for cities and towns to the state’s general fund. The

City received $53.9 million in FY04 and FY05 and $60.5

million in FY06 as the state continued to divert growth

in lottery receipts away from cities and towns. In

FY07, the cap on lottery was fully eliminated instead of

a planned annual phase-out that would end in FY09.

This change increased the City’s FY07 lottery aid to

$70.6 million. The City received $71.6 million in

lottery aid in FY08 and $64.6 million in FY09 after a

mid-year reduction. ($71.6 million had been

budgeted.) As mentioned above, the FY10 state

budget combined lottery aid with additional assistance

into a new account entitled Unrestricted General

Government Aid.

Additional Assistance

The Additional Assistance account was part of a

“needs-based” aid package in the 1980’s. Each

municipality’s allocation was determined through a

formula that compared costs and revenues to

statewide averages. Additional Assistance has been

important to Boston in supporting schools, public

safety and other basic city services.

Additional Assistance had been level-funded since

FY94, with most local aid increases coming through

Chapter 70 education aid instead. Its purpose and

usefulness came into question during the FY03 state

budget process when the governor vetoed $31 million

from the statewide appropriation and the legislature

failed to override that veto. Subsequently, the

governor reduced additional assistance yet again in

January 2003 for a total decrease of $73 million. As

Boston received over 40% of the statewide distribution

of additional assistance, those reductions fell

disproportionately on the City.

The City received $175.1 million in additional

assistance in FY03 after the reductions in that year

and $164.2 million in FY04 after a further reduction.

The City received additional assistance between FY05

and FY08 that was level with FY04 amounts. The City

received $148.2 million in FY09 after a mid-year

reduction by the state.

As mentioned above, the FY10 state budget combined

Additional Assistance with Lottery Aid into a new

account entitled Unrestricted General Government

Aid.

A detailed discussion of state aid is provided in the

Revenue Estimates and Analysis chapter of this

volume. Below is a brief summary.

LOCAL RECEIPTS Approximately 17% of the City’s recurring revenue in

FY13 is comprised of excise taxes, fines, payments-in-

lieu-of-taxes (including Chapter 121A), investment

income, departmental revenue, licenses and permits,

penalties and interest, and available funds.

In FY10 the City collected $398.9 million from these

combined sources and $420.9 million in FY11

(excluding an $82 million one-time pension

payment).The FY12 Budget assumes a decrease to

$404.0 million and the FY13 budget assumes an

increase to $431.3 million (Figure 6). (See Revenue Estimates & Analysis section of Volume I for more

detail on this revenue source.)

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Charter Schools Boston Enrollment and Net Cost FY03- FY13

Figure 5

1 4 S u m m a r y B u d g e t

FY13 budgeted local receipts continue to benefit from

revenue that was, previous to FY12, dedicated to

support special obligation debt service for the Boston

Convention and Exhibition Center (BCEC).

Additional room occupancy excise revenue and a

vehicle rental surcharge are now available to the

general fund to offset the debt which is now general

obligation.

Many of the City’s local receipts are extremely

sensitive to current economic conditions. Excises,

interest on investments, and license and permit

revenues of the City declined in FY10 as a result of the

recession. FY11 and FY12 assumed continued declines

or marginal growth in these revenues except for those

with tax rate or fee increases. The FY13 budget

assumes increases in all of the above categories except

interest earnings and available funds. What follows is

a brief description of selected local receipts, their

recent performance and expectations for the FY13

Adopted Budget.

• After a strong year in FY11, revenue from

motor vehicle is expected to decrease in

FY12 and gain modestly in FY13 as slowly

increasing demand drives sales along with

low interest rates and job growth.

• The Commonwealth granted municipalities

a new 0.75% local option tax on restaurant

meals beginning October 1, 2009. The City

adopted this tax and collected a partial year

of revenue in FY10. In FY11, the City

collected $20.2 million in meals tax. The

FY12 and FY13 budgets assume a small

decline and an increase to the FY11 level,

respectively.

• After several weak years due to economic

conditions, jet fuel and hotel revenues are

increasing based on increasing travel and

rising fuel prices. The hotel excise also

benefits from its FY10 rate increase from 4%

to 6% and the debt-related change

mentioned above. In addition, a vehicle

rental surcharge of $1 per vehicle rental

contract also moves to the general fund for

FY13 and forward.

• With near-zero federal funds rates, the

City’s investment earnings have plummeted,

even as cash balances have remained strong

in recent years. FY12 and FY13 earnings are

expected to remain very low.

• Voluntary payment-in-lieu-of-tax

agreements with non-profit institutions

(excluding the Massachusetts Port

Authority) are expected to increase in FY12

and FY13 based on the results of a taskforce

appointed by the Mayor which concluded its

work last year. This taskforce

recommended more standardization among

agreements as well as a higher ratio of

payment to property value than was in place

previously.

• License and permit revenues, driven by

building permits, have jumped considerably

as large commercial construction projects

have recently begun in earnest. Building

permit fees are expected to rebound in

FY13.

• Chapter 121A agreements are payments in

lieu of tax for property developed in

blighted areas. Those that qualify pay

different taxes on income and property as

determined under Chapter 121A of

Massachusetts General Law. 121A

payments in FY12 are expected to decline

due to a one-time payment received in FY11

from one large property in downtown

Boston as it moved to taxable status.

Inflationary growth is expected in the

remaining agreements for FY13.

The remaining sources of other revenue to the City are

set rates of fees, fines, penalties or interest. These

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Recurring Local Receipts(non-property tax/state aid) FY02 - FY13 (adj. for actual base hotel collections)FY12 forward includes base & new hotel tax

Figure 6

S u m m a r y B u d g e t 1 5

usually endure economic changes with small changes

in activity or revenue.

Non-Recurring Revenue The City appropriates funds from the Surplus Property

Disposition Fund on an as-needed basis for non-

recurring expenditures.

In FY12 and FY13, the City will not appropriate from

the fund.

Budgetary Fund Balance Fund Balance can be appropriated for use during the

fiscal year. Budgetary fund balance, more commonly

referred to as “free cash,” is described as the portion of

available reserves, generated to a considerable degree

by annual operating surpluses, which the City can

responsibly appropriate for spending. The law

governing the calculation and availability of budgetary

fund balance for cities and towns is Chapter 59,

section 23 of Massachusetts General Law and is

administered by the Massachusetts Department of

Revenue. The FY13 Budget assumes no use of

budgetary fund balance and unlike prior years uses

recurring revenue to fund the appropriation for other

post-employment benefits (OPEB).

(See Financial Management section of Volume I for

more detail on this revenue source.)

1 6 S u m m a r y B u d g e t

EXPENDITURES Expenditures are broken down into two primary

groups: appropriations directly related to

departmental services and fixed and mandated costs.

FY13 appropriations are subdivided into three

subgroups as follows:

City Departments, which includes all operating

department appropriations, a risk retention reserve

and a set-aside for tax title and annual audit expenses;

Boston Public Health Commission (PHC), the City

appropriation for the quasi-independent authority and

successor to the Department of Health and Hospitals;

and

School Department, the City appropriation for the

Boston Public Schools (BPS).

Appropriations are also presented by expenditure

category across the three subgroups. (Figure 7)

Personnel Services include salaries, overtime,

Medicare, unemployment compensation and workers’

compensation, and a collective bargaining reserve for

employees in City departments, PHC and BPS. Nearly

all of the collective bargaining agreements between

the City and the unions expired during calendar year

2010. The contract with the firefighters union expired

on June 30, 2011. The City has settled collective

bargaining agreements with several non-public safety

unions and is currently in active negotiations with the

remaining unsettled unions. The collective bargaining

reserves contain funding based on estimates for

successor agreements that would cover proposed wage

increases and the retroactive impacts of wage

increases that are being negotiated for FY11 – FY13.

Current reserve amounts are based on the wage

pattern agreed to with the settled collective

bargaining agreements.

The Health Benefits category includes the cost of

health care coverage for City and BPS employees and

retirees as well as PHC employees plus the

appropriation for Other Post-Employment Benefits

(OPEB).

The Contractual Services category includes

expenditures for communications, repairs and service

to buildings, equipment and vehicles, transportation,

trash collection and disposal, as well as outside legal,

advertising and printing expenses.

Included in the “Other” category are supplies and

materials such as gasoline, uniform allowances, office

supplies, workers’ compensation medical expenses,

medical indemnification in the Fire and Police

Departments, legal liabilities and aid to veterans. Also

included in the “Other” category are appropriations for

equipment, vehicles, a risk retention reserve, the

Housing Trust Fund, tax title and funding for the City’s

outside audit.

EMPLOYEE BENEFITS

Balancing Responsibility for Health Care Costs In FY13, the City has budgeted $289 million in health

insurance premiums for city employees and retirees –

almost 12% of total expenditures. Similar to other

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City Cost Increases (cumulative)FY01-FY15 (FY14-FY15 Projected)

FY13 Health Insurance 135%

FY13 Other City Costs 39%

Figure 8

PERSONNELSERVICES

61.3%

CONTRACT. SERVICES

14.6%

OTHER4.7%

PHC2.8% HEALTH

BENEFITS16.6%

FY13 Appropriations by Category

Figure 7

S u m m a r y B u d g e t 1 7

Massachusetts municipalities, Boston’s health

insurance costs have dramatically increased over the

last decade, restricting resources available for other

purposes.

As Figure 8 demonstrates, the higher growth rate for

health care, compared to other city costs, will

continue into future years. However, in FY13, the City

is experiencing a one year unusual cost decrease,

shown more specifically in Figure 9. This decrease is

due to the confluence of several factors: City

employees and retirees continuing to share a larger

portion of health care costs, Medicare beginning to pay

its full share of the City’s health claims (see later

section on mandatory Medicare Enrollment), and

lower health insurance premiums due to a lower

claims year.

Partnership with Unions

In FY11, the City adopted MGL Chapter 32B, S.19 and

began working with the unions through coalition

bargaining. As part of a four year agreement between

the City and its thirty-six bargaining units,

represented through the Public Employee Committee

(PEC), City employees and retirees will pay an

increased share of total health care costs. The

agreement was established outside of, but was assisted

by, new statewide legislation allowing municipalities

more freedom in health plan design. The agreement is

projected to save up to $70 million in City costs from

FY12 – FY15. Under this agreement, employee and

retiree share of premiums for non-Medicare plans

increased by 1.25% in FY12 and will increase by

another 1.25% in FY13. Total premium share will vary

by type of plan, ranging from 17.5% for HMOs to 27.5%

for indemnity plans. In addition to the premium share

increase, member co-pays will increase in FY13 for

prescriptions, office visits, and emergency room visits.

Figure 10 demonstrates the higher share of total

health care costs (including premiums and co-pays)

borne by employees and retirees as a result of this

agreement. In FY11, members paid roughly 18% of

total health care costs, compared to 22% in FY13 after

all changes are in place. In FY16, the City will have

the ability to accept the new state legislation, and

further increase employee and retiree out-of-pocket

payments.

Mandatory Medicare Enrollment

The new state municipal health care legislation

further mandates that all Medicare-eligible municipal

retirees must enroll in Medicare Part B and a City

health plan. The City projects annual savings,

beginning in FY13, of almost $6 million from this new

legislation.

The Broader Picture

Healthplan Active Retiree * TotalIndemnity 2,135 1,917 4,052

HMO 13,193 3,248 16,441

Medicare - 8,545 8,545

Total 15,328 13,710 29,038

City Healthplan Subscribers Feb '12

* Headcounts are pro jected for post mandatory M edicare enrollment.

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FY11 Boston FY13 Boston GIC - HPHCPPO

Employee Share Employer Share

FY13 Employee Share of Total Healthcare Costs Premium plus "out-of-Pocket" (OOP) costs. Boston and GIC Premium shares for Harvard Pilgrim.

Figure 10

Fiscal Total Dollar PercentYear Cost Change ChangeFY05 $189.2FY06 $209.2 $20.0 10.5%FY07 $234.3 $25.1 12.0%FY08 $254.0 $19.7 8.4%FY09 $263.0 $9.0 3.6%FY10 $278.6 $15.6 5.9%FY11 $290.5 $11.9 4.3%FY12* $307.4 $16.9 5.8%FY13* $289.0 ‐$18.4 ‐6.0%

*FY12 Projection and FY13 Budget estimate

Health Insurance ($ Mil)

Figure 9

1 8 S u m m a r y B u d g e t

As Figure 8 demonstrates, the City’s steadily

increasing health care costs experienced a slower

average 6% annual trend from 2008 – 2013, compared

to over 10% in prior years. This slightly lower trend

reflects three components – lower premiums due to

more aggressive rate negotiations along with lower

overall claims inflation in that period, the increasing

of cost share paid by City employees and retirees, and

the phasing out of a high cost health plan (Blue Cross

Master Medical). As mentioned earlier, after the one

year FY13 negative cost adjustment due to these same

factors and mandatory Medicare, costs will continue to

increase based solely on medical cost increases,

nationally projected to exceed 8% per year.

This continuing high rate of cost increase is due to

multiple factors, including increasing medical

provider charges, increasing available technologies, an

aging population, overuse of certain services, high

utilization of more expensive hospitals, and unhealthy

lifestyle choices of members. These problems must be

addressed by multiple parties.

The City, in cooperation with the Public Employee

Committee (PEC), will continue to tackle the portion

of these factors within its control. For example:

• From FY08 through FY12, the City and its unions

agreed to phase out a costly indemnity plan,

saving millions of dollars per year with no

negative impact on members.

• In March 2012, the City and the PEC agreed to

self-insure most of the City’s health claims to

reduce administrative costs, and establish a

mechanism to smooth premium increases in the

long run.

• Multiple efforts are being taken to encourage city

employees and retirees to adopt healthier

lifestyle choices. For example, targeted benefit

improvements are being made to support

smoking cessation. Also, the City is contracting

with Atrius Health, a major health care provider,

to provide additional chronic disease

management services for City of Boston patients.

Note: FY13 health, dental and life insurance benefits

for City employees and retirees are budgeted

separately for City departments ($196.8M), BPS

($87.0M), and PHC ($10.5M).

Other Post-Employment Benefits (OPEB)

While the City is required by law to make an annual

contribution toward reducing its unfunded pension

liability, there is no such requirement for retiree

health and life insurance benefits. The City pays for

retiree health benefits as the actual expense is paid

out on a pay-as-you-go basis, which greatly understates

the full obligation. Similar to pensions, employees

earn these other post-employment benefits (OPEB)

over their years of service, but do not actually receive

them until retirement. In fact, this liability is greater

than the City’s pension liability. An independent

actuarial valuation estimates the City’s total OPEB

obligation at June 30, 2011 at $3.1 billion.

In FY08, the City was required by the Governmental

Accounting Standards Board (GASB) to implement

new standards that required the City to identify and

disclose this future estimate on non-pension benefits

earned but not yet funded which the City is obligated

to pay on behalf of current and future retirees. In

FY08, in the absence of legal authority to establish a

trust fund for the purpose of prefunding OPEB

liabilities, the City established an OPEB Stabilization

Fund and made an acknowledgement payment of $20

million to that fund, a first step in addressing this

unfunded promise. An additional $25 million

appropriation was made to this Stabilization Fund in

FY09.

In June 2009, the City accepted Chapter 32B, section

20, as added by Chapter 479 of the Acts of 2008,

authorizing the establishment of an irrevocable Other

Post-Employment Benefits Liability Trust Fund. An

appropriation of $20 million to this Trust Fund was

made in FY10 with $35 million appropriated in both

FY11 and FY12. In April 2011, the City transferred the

balance of the OPEB Stabilization Fund to the

irrevocable OPEB Trust Fund.

The City will allocate another $40 million in FY13

toward reducing this liability. A fully funded annual

required contribution (ARC) would set aside enough

assets to pay the liability that current employees are

incurring, as well as a portion of any liability due to

benefits earned and never accounted for. The City’s

OPEB financing plan balances the duty to deliver

valuable public services while acknowledging the cost

of providing health benefits for our employees, both

now and when they retire.

S u m m a r y B u d g e t 1 9

Pensions

The City participates in a contributory defined benefit

retirement system that is administered by the State-

Boston Retirement System (SBRS). SBRS is one of

106 public pension systems governed by Massachusetts

General Law Chapter 32. The most recent completed

valuation of the SBRS, based on January 1, 2010 data,

committed to funding based upon a schedule which

includes paying the normal cost and an annual

contribution toward reducing the unfunded liability to

zero by the year 2025. Current state law allows systems

to fully fund by no later than 2040.

The City’s annual pension funding contribution was

$108.5 million in FY10, $192.0 million in FY11, and was

budgeted for $126.5 million in FY12 and $137.0 million

in FY13. The large-scale swings in pension cost during

FY09-FY12 are driven by two main factors:

1) Legislation passed in May, 2010, transitioned the

City’s pension cost away from any relationship to

teacher’s liability (thus the lower “Required

SBRS Appropriation” and the zeroing out of the

“Teachers’ Pension Reimbursement”).

2) The extraordinary additional down payment of

$82 million on the pension unfunded liability in

FY11.

The real trend in pension cost is best represented by

the Net Required Pension Cost in Table 1. The Net

Required Pension Cost hovers between $94 million and

$110 million between FY09 through FY11, before a

significant jump occurs in FY12. FY12 is the first year

the SBRS required appropriation was impacted by the

significant loss in pension assets in the 2008 calendar

year.

ENERGY MANAGEMENT

Energy Management Board The Mayor’s Energy Management Board is charged

with making decisions regarding the City’s

procurement, use and conservation of energy and to

minimize the associated greenhouse gas impacts to

public health. The Energy Management Board is

comprised of the Chief of Environment and Energy,

Chief Financial Officer, Chief of Public Property and

the Chief of Public Health.

In FY13 energy budgets total $55.5 million with

electricity costs making up 49% of the budget, natural

gas costs making up 29% of the budget and

gasoline/diesel comprising 12% of the budgets. The

remaining 10% of the budget funds water and sewer,

steam and heating oil.

Energy Management Policies The City’s energy management and reduction policies

seek to:

• Coordinate and enhance existing conservation

programs;

• Incorporate best practices for both operations &

maintenance and future capital investment;

• Focus on efficiency projects using currently-

available and proven technologies; and

• Analyze the financial impacts of project

implementation.

Energy Management Strategies Following the policy of best practices in both

operations & maintenance and capital investment,

strategies have been developed to implement energy

conservation projects. Strategies include:

• Maximize the use of energy efficiency subsidies

provided by energy efficiency distribution tariffs and

distributed by local utility companies;

• Use existing Energy Management Systems to

control energy use at existing buildings;

Changes to City Pension Funding Obligations ($millions)

SBRS Required

Appropriation

Teacher's Pension

Reimbursement

Net Required Pension

Cost

Extraordinary

Payment

Total Pension

CostFY13 $ 136.98 -$ 136.98$ -$ 136.98$ FY12 126.55 - 126.55 - 126.55$ FY11 110.01 - 110.01 82.00 192.01FY10 108.46 - 108.46 - 108.46FY09 213.23 118.84 94.39 - 94.39FY08 202.90 105.40 97.50 - 97.50

Table 1

2 0 S u m m a r y B u d g e t

• Provide for a green energy component in the City’s

electric supply contract;

• Support electric grid reliability and generate

revenue and energy savings with demand response

contract; and,

• Implement energy performance contracts to get

necessary capital improvements and ensure

operational efficiencies.

Energy Management Successes In FY13, the City hopes to continue its trend of energy

management successes and to continue to benefit

from decisions made in prior fiscal years.

The City competitively procures it electric supply and

is currently covered by a contract that will be in place

through March 2013. The contract uses a pricing

model where the City buys its electricity in the

variable day-ahead electric supply market to get the

lowest cost possible. The City measures its success in

this contract by comparing its electric supply costs

incurred through the third party supply vendor to

what it would have paid NSTAR, the local electric

distribution company, for the same electric supply.

During FY12 and into FY13, the most dramatic change

in energy use will come in the Public Works

Department. Through a collaborative effort of the

Environment and Energy Cabinet, the Public Works

Department and NSTAR, the local electric distribution

company, three financial resources have been

combined to implement a significant retrofit project.

The project involves the replacement of mercury vapor

street lighting fixtures with energy efficient Light

Emitting Diodes (LEDs). In FY12 the LED project will

save 11.3 million kilowatt hours of electricity savings

and an estimated $1.5 million. The cost of the LED

project is currently funded with City capital bond

funding and energy efficiency incentive dollars

distributed by NSTAR, and has been funded from the

Energy Efficiency and Conservation Block Grant,

funded by the American Recovery and Reinvestment

Act (ARRA).

Additional energy projects implemented in FY12

include the upgrade to the energy management system

(EMS) at the main branch of the Boston Public

Library at Copley Square and a second phase of energy

improvements at Boston City Hall that involved

improvements to the heating, ventilation, and air

conditioning (HVAC) system that includes a chiller

automation system and variable speed drives for water

pumps. These two projects are projected to produce

estimated FY12 savings of 1.3 million kilowatt hours

and $163 thousand.

Continuing a successful partnership with the City’s

local utility companies and accessing energy efficiency

incentive grant funds, future projects for FY13 and

beyond include the continued upgrade of street lights

fixtures to LEDs that should save an additional 7.5

million kilowatt hours of electricity and an estimated

$936 thousand in FY13. Additionally a third phase of

energy improvements is scheduled for Boston City Hall

that involves an upgrade to the energy management

system and additional HVAC improvements to improve

exhaust and return air upgrades along with

improvements to dampers and distribution systems.

This phase is projected to save an estimated 1.6

million kilowatt hours of electricity and $213 thousand

in FY13.

S u m m a r y B u d g e t 2 1

APPROPRIATIONS

Departmental Appropriations The combined appropriations for City Departments,

the Public Health Commission (PHC) and the School

Department (BPS) as shown in the FY13 Budget

Summary have increased by 1.0% from the FY12

appropriations. Approximately 73% of the amount

shown for City Departments covers four

appropriations: Police, Fire, Public Works and Health

Benefits. (Health Benefits are also included in the

appropriations for PHC and BPS.)

The departmental appropriations are shown in the

General Fund Appropriation by Cabinet table.

Departmental appropriations also can be divided by

cabinet, to better reflect the overall policy priorities

and trends by service area. (Figure 10)

Some of the highlights of FY12/FY13 changes by

cabinet are as follows:

Mayor’s Office Overall, in FY13 the departments in the Mayor’s Office

cabinet will see an increase of 0.3%. Departments

included in the Mayor’s Office Cabinet are the Mayor’s

Office, Emergency Management, Law, Office of

Neighborhood Services and Public Information. The

Mayor’s Office Cabinet will continue to house the

Office of New Urban Mechanics dedicated to civic

innovation, focusing on delivering both transformative

and basic City services to Boston's residents. The

Mayor’s 24-Hour Office of Constituent Engagement in

the Public Information Department works in

partnership with the Department of Innovation and

Technology (DoIT) and front-line service delivery

departments to manage the Constituent Relationship

Management (CRM) system. This system dispatches

work to the responsible city departments and tracks

the final resolution. Costs related to CRM technology

are budgeted in the Department of Innovation and

Technology (DoIT) which is under the Chief

Information Officer.

Advocacy and Strategic Investment The Advocacy and Strategic Investment Cabinet

focuses on enacting legislative reform, strengthening

education, fostering job creation and serving Boston’s

diverse communities supported by local, state and

federal partners. The cabinet is comprised of the

Boston Residents Job Policy, Intergovernmental

Relations, Office of New Bostonians and the Small and

Local Business departments. The budgets in this

cabinet will see a 1.4% increase in FY13. The Office of

Boston Residents Jobs Policy’s mission is to increase

construction opportunities for Boston’s residents,

minorities and women. The Intergovernmental

Relations department keeps the Mayor informed on

intergovernmental issues at the city, state and federal

levels. The Office of New Bostonians seeks to

strengthen the ability of new immigrants in the City of

Boston to fully participate in economic, civic, social

and cultural life of the City. The Small and Local

Business Enterprise Office (S/LBE) is responsible for

ensuring the equitable participation of small and local

businesses, as well as minority and women businesses,

in the City’s contracting arena.

The Advocacy and Strategic Investment Cabinet plays

a leadership role in the Circle of Promise initiative

working to foster collaboration between City

government centered in Boston Public Schools, not-

for-profit organizations, and families in the Circle of

Promise to combat family poverty by helping secure

jobs and job training, housing, food and health care

services, and any other public benefits necessary to

improve people’s lives.

Administration and Finance The Administration and Finance Cabinet administers

the day-to-day management of city government. In

addition to various administrative departments and

the Boston Public Library, the Administration and

Finance Cabinet houses the central City

appropriations for Execution of Courts, Health

Insurance, Medicare Payments, Pensions and

Annuities, Unemployment and Workers’ Compensation

Fund. As a result of a one-year decrease in the central

MAYOR0.6%

ADMIN. & FINANCE

13.9%

CIO1.1%

PUBLIC PROPERTY

2.2%

ECON DEV0.0%

ENVIR. & ENERGY

0.9%

PUBLIC SAFETY23.9%

HUMAN SERV.1.9%

PHC3.4%NON-

MAYORAL0.3%

HOUSING & NEIGHBOR-HOOD DEV

0.5%

ADVOCACY &

STRATEGIC INVEST.

0.1%

EDUCATION44.2%

PUBLIC WORKS & TRANS.

6.9%

FY13 Appropriations by Cabinet

Figure 10

2 2 S u m m a r y B u d g e t

Health Insurance appropriation (more fully discussed

in the Employee Benefits section earlier in this

chapter), the Administration and Finance Cabinet will

see a 6.9% decrease in FY13.

The Assessing Department will see a 2.7% increase in

its appropriation primarily due to increased costs

related to the revaluation process in FY13 and

collectively bargained wage increases. Assessing is

required to conduct a comprehensive parcel-specific

revaluation of the City’s taxable property every three

years.

The Auditing Department is responsible for

monitoring the City’s internal controls, managing

grant funds, providing financial reports and

maintaining the financial records of the City. Auditing

will see a 5.4% increase in its FY13 appropriation as

the department reorganizes to provide centralized

accounts payable services – a business process change

that will come as a result of the Boston Administrative

Information System (BAIS) Financials upgrade. The

Auditing Department is the lead business sponsor for

the BAIS Financials upgrade project but the project

will involve most of the departments within the

Administration and Finance Cabinet along with the

continued partnership with the Department of

Innovation and Technology (DoIT). The goals of the

BAIS Financials project are to upgrade the BAIS

application to improve operational efficiency and

effectiveness, reengineer and standardize business

processes and to provide a more environmentally

friendly operation that eliminates paper processes

with improved electronic workflow. The project is

funded with a combination of external and capital

budget resources and is scheduled to be completed for

FY13.

The Office of Budget Management (OBM) manages

the City’s operating and capital budget development

and resource planning processes as well as the Boston

About Results (BAR) performance management

program with the Office of Administration and

Finance. OBM will see essentially level funding in its

FY13 appropriation.

The Health Insurance appropriation for City

employees and City and BPS retirees will see a one-

year unusual decrease of 9.9% compared to the FY12

appropriation, a cost reduction of $21.5 million. The

Health Insurance appropriation also includes the cost

of dental and vision coverage for employees (non- BPS

and PHC) and retirees who are eligible for coverage

through collective bargaining agreements or executive

order.

The Human Resources Department will see a 4.2%

increase in its FY13 appropriation with the addition of

a position plus a contract to provide classification and

compensation reviews for city employees and

positions. As it continues to prioritize cost

management, the Human Resources Department has

added additional staff in its Health Benefits unit.

The Boston Public Library (BPL) Department will see

a 3.4% increase in its FY13 general fund appropriation.

In FY13 the BPL will restore its materials budget back

to FY11 funding level. The additional funds will be

spent on downloadable e-books as well as books and

DVDs for branches throughout the system. In FY13 a

new e-reader lending program will be developed to

bring this new technology to those unable to buy e-

readers. Resources have also been designated to make

creative facility improvements to the branch libraries.

These improvements include an early literacy nook at

Charlestown, a teen writing lab at Egleston, a teen

zone at Hyde Park, and the rejuvenation of outdoor

space in South Boston. Additionally, staff resources

have been added to support the management of larger

capital facility improvements.

The Purchasing Department will be a leader in the use

of one of the new modules included in the BAIS

Financials upgrade discussed earlier. The

eProcurement module will provide new functionality

in the BAIS Financials application and will streamline

the purchasing process.

Chief Information Officer The Department of Innovation and Technology (DoIT)

will see a 5.7% increase in its FY13 appropriation.

This budget reflects the Mayor’s commitment to invest

in technology to increase efficiencies and deliver

improved city services. Much of the budgetary growth

for DoIT in FY13 relates to new enterprise-wide

software maintenance costs for the City’s disaster

recovery technology infrastructure, new modules for

the BAIS Financials application and Boston About

Results (BAR) software. These technology

improvements benefit all departments but are

centrally budgeted in DoIT.

In FY13 DoIT will hire a civic software developer to be

a liaison to Boston’s native developer communities and

support the City’s open data strategy and host

developer engagement events. This new position will

S u m m a r y B u d g e t 2 3

work closely with the Mayor’s Office of New Urban

Mechanics. During FY13, DoIT will continue to shape

the City’s Information Technology (IT) strategy and to

manage the City’s entire technology project portfolio

including ongoing projects such as enterprise-wide

permitting and licensing, the new Boston Business

Hub (BizHub) web portal, the Constituent

Relationship Management (CRM) system, expansion

of Geographic Information Systems (GIS), the

Computer Aided Dispatch (CAD) system and providing

technological support for the Community Learning

Initiative involving the Boston Public Schools (BPS),

Boston Public Library (BPL) and the Boston Centers

for Youth and Families (BCYF). DoIT also provides

technical support to the upgrade to the Boston

Administrative Information System (BAIS) Financials

application discussed earlier in the Administration

and Finance Cabinet section.

DoIT is managing the Boston Public Computing and

Sustainable Broadband Adoption grants. These

competitive grants, funded by the American Recovery

and Reinvestment Act (ARRA), have created 48

modern public computing sites located at BCYF, BPL

and Boston Housing Authority (BHA) facilities with

627 computers available for public use. This

investment has resulted in over 9,000 citizens

attending computer training and will allow for an

additional 45,000 citizens to have access to computers

and broadband internet.

Public Safety In FY13 the Public Safety Cabinet that includes the

Fire and Police Departments will see a 2.8% increase.

The FY13 budget for the Fire Department will increase

by approximately $3.5 million or 1.9%. The budget

includes the impact of a new firefighter recruit class

to start in July, 2012 and a second recruit class

scheduled to start in mid FY13. The recruit classes

are intended to replace retirees and to ensure that

staffing levels in the fire suppression category are

maintained at the desired operational level. The FY13

Fire Department budget will make a considerable

investment in a new inspection and cleaning program

for its bunker gear as recommended by national

standards. The FY13 budget includes funding to

repair and clean existing sets of bunker gear and

continues the ongoing plan to replace bunker gear

that has reached the end of its useful life.

The Police Department’s FY13 budget will increase by

$9.3 million or 3.5%. In FY13 the Police Department’s

budget will need to absorb the majority of the cost of

50 police officers that were funded on the ARRA-

Community Oriented Policing Services (COPS) Hiring

Recovery Grant for the last three years. Pursuant to

the terms of the grant the City agreed to cover the

fourth year of salaries with City funding. Additionally,

the FY13 budget includes funding for a recruit police

officer class currently planned for the fall of 2012 to

ensure that the City will maintain its sworn staffing

levels. The Police Department will make investments

in necessary equipment for police officers including

bullet-proof vests and guns. The FY13 budget also

includes a large allocation to cover the cost of

developing and implementing a new exam for superior

officers.

In FY13 the department will implement a new

Community Oriented Policing Services (COPS) grant

to support increased officers on Safe Street Teams.

The successful award of this new COPS grant requires

a local match that has been included in the FY13

budget. Safe Street Teams engage Boston police

officers in community problem-oriented policing of

violent crime hot spot areas. Safe Street Team

officers are assigned to these areas for a sustained

period of time which allows officers to get to know

local residents and business owners and form effective

working partnerships. Since deployed, the

neighborhoods with Safe Street Teams have seen a

material reduction in crime. In an effort to better

coordinate the department’s community outreach and

increase the number of neighborhood crime watches, a

Director of Neighborhood Outreach will be hired. The

Bureau of Intelligence and Analysis will continue,

through the Boston Regional Intelligence Center

(BRIC), to be the central clearinghouse of information

from all available sources providing tactical and/or

strategic expertise to support law enforcement

activities throughout the department. The BRIC is

partnering with the Massachusetts Institute of

Technology (MIT) to create a predictive policing

model to stop problems before they arise.

Economic Development The Boston Redevelopment Authority (BRA)

continues to fully fund its operation as the City’s

central planning and economic development agency

within the existing BRA revenue structure without

support from the City’s general fund in FY13. The BRA

does access the City’s capital budget to make

investments in economic development areas under its

control.

2 4 S u m m a r y B u d g e t

Public Property The Public Property Cabinet as a whole will see an

increase of 6.5%. Coming out of a period of severe

fiscal constraint, the City is experiencing a pent-up

demand for capital investment and requires a stepped-

up program to address deferred maintenance of its

capital assets. To address these concerns about the

City’s capital assets, the Property and Construction

Management (PCM) Department will see a $1.2

million or 6.5% increase in its appropriation in FY13.

Most of the increase comes from additional staff being

hired in the capital construction unit of PCM to

manage the execution of the facility component of the

City’s capital plan. The FY13 budget also includes

wage increases for settled collective bargaining

agreements. In addition, an increase to PCM’s

operating budget for repairs to buildings will help with

ongoing building preventative maintenance and

repairs to avoid more costly capital repairs.

The Office of Arts, Tourism & Special Events will see a

7.9% increase in its FY13 appropriation primarily

related to a decision to create in-house City positions

to manage the Parkman House and the Strand

Theatre. These City facilities were previously staffed

with employees of a non-profit organization.

Additionally, with increased activity at the Strand

Theatre the department’s utility budget is seeing an

increase. The Consumer Affairs & Licensing

department shows a slight decrease in FY13 that will

have no impact on services.

The Department of Voter Mobilization will see a 5.1%

decrease in its FY13 appropriation. The department’s

budget varies each year based on the number and type

of elections scheduled to take place. In FY13, two

elections are scheduled, a state primary election and

the state and Presidential final election. In the state

elections, unlike municipal elections, the state will

bear all of the costs associated with printing the

ballots for every registered voter. The department will

continue to canvass all of Boston’s neighborhoods

during the annual listing process to have a full and

complete list of Boston residents over the age of 17 to

provide to the state’s Jury Commission. Expanded

outreach to non-English speakers is also a priority.

The Parks and Recreation Department budget will see

an increase of 9.4% in FY13. The bulk of the increase

is attributed to an expanded seasonal workforce that

is assigned to Parks Maintenance crews from April to

October and a special allocation of funding targeted at

deferred maintenance and beautification projects in

city parks. The FY13 budget also includes wage

increases for settled collective bargaining agreements.

The Parks Department will add an additional tree

climber position to establish two full in-house tree

crews that work in conjunction with outside

contractors to address the single most frequent

customer service request – tree maintenance. The

Mayor’s “Boston Blooms” program will be expanded

with additional flowers and bulb plantings in

partnership with community groups.

Public Works & Transportation Individual budgets in this cabinet include Public

Works, Central Fleet Management and Transportation,

as well as the City’s appropriation for snow removal.

Excluding the budget for snow removal, the Cabinet

reflects an increase of 2%.

The Public Works Department’s FY13 appropriation

has been increased by 2.5%. Public Works will see an

increase to its waste removal appropriation with the

continuation of multi-year waste removal contracts

that contain increases tied to the consumer price

index or pre-approved price schedules. Also, Public

Works recently accepted contract bids for street

sweeping that will increase the cost of day and night

street sweeping in FY13. Public Works, like many

frontline departments, has added vehicle replacement

to their FY13 budget. Through a collaborative effort

with the Environment and Energy Cabinet and NSTAR,

the local electric distribution company, Public Works

will continue to retrofit existing street light fixtures

with energy efficient Light Emitting Diodes (LEDs).

The cost of the ongoing LED project is funded with

City funding and energy efficiency incentive dollars

managed by NSTAR.

In FY13, the Transportation Department will see a

decrease of .7%. The FY13 decrease is tied to two

areas. The reduction in personnel is the result of a

more controlled hiring process particularly for parking

enforcement officer positions while the department

continuously evaluates the optimum number of

parking enforcement officers needed to enforce

current regulations, improve traffic flow and allow for

enforcement on streets posted for non-parking during

scheduled street sweeping operations. The reduction

in the lease purchase budget relates to the retirement

of lease purchase equipment financing debt during

FY12 for parking meter and other equipment

purchased during FY09.

S u m m a r y B u d g e t 2 5

Transportation will increase its use of Global

Positioning Systems (GPS) in FY13 to better track

traffic enforcement efforts. The Transportation

budget includes funding for community bicycle

programs originally funded with external resources

and for the cost of pavement markings including

bicycle lanes. The cost of pavement markings was

budgeted in Public Works in FY12.

As was mentioned earlier, many frontline city

departments, including the Transportation

Department, have provided for vehicle replacement in

their FY13 budget. The Central Fleet Management

(CFM) Department played a critical role in the

analysis of departmental vehicle inventories that

included information about vehicle age, mileage and

repair history so that departments could make

informed decisions with regard to vehicle replacement

plans and budgets. CFM helped make the business

case that, more often than not, it is more cost effective

to replace a vehicle rather than keeping it beyond its

useful life and incurring costly maintenance and

repairs. CFM is reviewing vehicle utilization and has

procured vehicle sharing software to create a larger

pool of shared city vehicles dubbed FleetHub. The

goal of FleetHub is to increase utilization per vehicle,

which will allow a reduction in total vehicles needed.

The software provides a more efficient and user-

friendly means of scheduling vehicle use among city

staff. Also, in an effort to eliminate the costly practice

of maintaining departmental back-up vehicles, CFM

will provide a central pool of loaner vehicles for front

line departments so that a scheduled vehicle repair

will not interfere with the delivery of basic city

services. All of these efforts are being made to create

a smaller fleet of city vehicles that optimizes their use,

maintains an appropriate replacement schedule and

prioritizes regular ongoing preventative maintenance.

Environment and Energy The Environment and Energy Cabinet, which includes

the Environment and Inspectional Services (ISD)

departments, will see a 4.1% increase in FY13. The

Environment and Energy Cabinet focuses on energy

policy including renewable energy, green buildings,

and electricity deregulation in addition to enforcing

the City’s building, housing, and environmental

regulations. The collective efforts are generally

referred to as the City’s Municipal Sustainability

Program.

The Inspectional Services Department (ISD) will see

an increase of 1.1%. ISD was the first city department

to begin to move their business processes to a new

Automated Permitting and Inspection System (APIS)

being implemented by the Department of Innovation

and Technology (DoIT). The goal of the enterprise

permitting and licensing system is to move all City

permitting to a central system to provide consistent

levels of service and data across all city departments.

In conjunction with APIS, ISD will collaborate with

other permitting agencies such as the Fire

Department and Neighborhood Development to

support the Boston Business Hub (BizHub), a one-

stop permitting center to support constituents and

small businesses with easier and more accessible

permitting. ISD has included items in their FY13

budget aimed at improving customer service. In FY13

ISD will buy technology that will allow for the

electronic transmission and review of construction

plans by multiple departments. Also, in an effort to

help the customers who come to do business at ISD’s

offices located at 1010 Massachusetts Avenue, ISD will

install active video displays to help customers navigate

the required permit processes and procedures.

The Environment Department will see a significant

increase of 36.6%. The increase reflects a

commitment to programmatic activities that were

originally funded with external resources. Two

municipal energy managers currently being funded by

the Energy Efficiency and Conservation Block Grant,

an American Recovery and Reinvestment Act (ARRA)

grant, will move to the Environment Department’s

operating budget in FY13. The Environment

Department wants to continue to support the Renew

Boston initiative even though the Energy Efficiency

and Conservation Block Grant will expire during FY13.

(Renew Boston is a network of energy efficiency

providers helping to assist qualified Boston

homeowners and landlords in making energy

improvements to their properties). The department

will hire an in-house Renew Boston Outreach Manager

to continue the collaboration with local utility

companies and community-based organizations that

are currently retrofitting existing homes and

implementing energy efficiency programs in small

businesses.

With the Mayor’s ongoing commitment to support

healthy food policies, the Environment Department

will move its Food Policy Director position from

external funding on to the operating budget in FY13

and add a new Food Policy Coordinator. The Food

Policy Council will continue to advance the Mayor’s

food agenda by working to increase access to fresh,

2 6 S u m m a r y B u d g e t

affordable, and local food, especially for those at risk

of going hungry.

Finally in an effort to preserve historic records

additional funding has been provided for the

Environment Department’s Landmarks Commission to

scan existing records in an electronic format. This

will allow the public to access these records online.

Human Services Overall, the FY13 appropriation for the Human

Services Cabinet has increased by 2.9%. The Boston

Centers for Youth and Families (BCYF) budget will

increase by 4.1%. BCYF has successfully consolidated

down to 35 sites over the past two fiscal years and

continues its commitment to move beyond providing

just gym and swim to provide full service community

centers in every neighborhood. Full service

community centers provide diverse quality

programming, appropriate staff to participant ratios,

and consistent hours of operation, quality facilities

and a commitment to working with partner

organizations and community stakeholders to provide

the highest levels of service to the community.

In FY13 BCYF will implement an outcome

measurement tool, “YOU Count”, to gain a deeper

understanding of the true impact BCYF is having on

the community it serves. Data gathered from the tool

will inform program changes at the centers to meet

community needs as they arise.

BCYF will begin to address requests for diverse

recreational activities and will install rock climbing

walls and high ropes courses at five community

centers. Redesigned teen centers, piloted at 5 sites,

will provide “teen friendly” spaces that will include

music studio elements, new furniture, homework

space, games, and technology to provide education

and enrichment. In an effort to encourage more

citizens to fully utilize their centers, community

friendly spaces will be created to convene meetings.

Spaces will be painted, furniture will be upgraded and

audio visual equipment and technology infrastructure

will be installed.

The Youth Fund will continue its successful

partnering with community-based organizations. The

FY13 general fund appropriation for the Youth Fund

has been level funded and together with anticipated

state funds is projected to provide an estimated 3,400

summer jobs. The City is expecting to receive funding

from the Commonwealth of Massachusetts for the

YouthWorks program that targets summer jobs for at-

risk and low income youth. Together with all of its

partners, the City’s goal is to provide 8,800 jobs.

The Commission for Persons with Disabilities’ budget

will increase by 8.9% in FY13. The Commission will

restructure its staff to meet its commitment to reduce

architectural, procedural, attitudinal, and

communication barriers that affect people with

disabilities.

In FY13, the Elderly Commission will see a 3.1%

increase with a plan to provide more events and

programs for seniors. The Commission will also focus

on engaging the aging baby boomer population. The

FY13 budget includes wage increases for settled

collective bargaining agreements. The slight decrease

reflected in the Veteran’s Services department will not

impact services. The Aid to Veteran’s appropriation

account that covers state-mandated veteran expenses

paid by the City and reimbursed by the Commonwealth

of Massachusetts at 75% of the actual costs will be

funded at the same level as FY12.

Housing and Neighborhood Development The Housing and Neighborhood Development cabinet

will increase by 1.6% in FY13. The Department of

Neighborhood Development (DND) will see a increase

of 3.8%. DND is in the process of adjusting to

significant cuts to federal grants such as HOME and

CDBG. The reductions have resulted in a decrease in

available funding for central administration. DND’s

FY13 operating budget has absorbed some but not all

of the cost of administrative positions that would have

had to be eliminated.

Leading the Way resources will support efforts in the

areas of foreclosure prevention, intervention and

property reclamation, neighborhood stabilization, and

rental housing development and preservation.

Economic development and job creation will be

supported with funding, technical assistance, and

training for the Main Street Districts whose mission is

to build vibrant neighborhood commercial districts

throughout the City. DND will continue its

partnership with the Department of Innovation and

Technology (DoIT) and other permitting departments

like Inspection Services and the Fire Department to

support the Boston Business Hub (BizHub). BizHub’s

goal is to be a convenient place for small businesses to

navigate required business permits and get technical

assistance.

S u m m a r y B u d g e t 2 7

Public Health Commission The Boston Public Health Commission (BPHC) serves

as the city’s health department and provides

community health programming, infectious disease

surveillance, shelter, food, and advocacy for homeless

individuals, substance abuse prevention and

treatment programs, school based health services, and

emergency medical services. The FY13 appropriation

for the Public Health Commission will decrease by

9.2%. The reduction is non-programmatic and is due

to the removal of the Boston Medical Center (BMC)

assistance grant from this department’s appropriation.

(See note below.) In addition it should be noted that

unlike most departments, the Public Health

Commission appropriation includes provisions for

health insurance, pension costs, and other post-

employment benefits. The actual operating budget for

the Public Health Commission, excluding health

insurance, pension and other costs, increased by 3.3%

from FY12.

The Public Health Commission plays a leading role in

the Mayor’s goal to narrow racial and ethnic health

inequities, achieved through strategies that include

the implementation of data collection regulations at

10 Boston hospitals and programming in the

neighborhoods to address the social determinants of

health. The Commission has adopted the following

overarching 5 year goals:

1. Reduce low birth rates among Boston

residents, and reduce the gap in low birth

rates between black and white residents by

25%;

2. Reduce chlamydia rates overall among Boston

residents 15 through 24 years of age, and

reduce the gap in chlamydia rates between

black, Latino, and white residents 15 through

24 years of age by 25%; and,

3. Reduce obesity rates among Boston residents

and reduce the gap between white and

black/Latino obesity/overweight rates in

children and youth by 30% and in adults by

20%.

The FY13 appropriation includes a one-time

investment to build a data exchange warehouse that

will allow the Commission to provide real time

information on health risks and the burden of disease,

as well as tracking best practices and health

outcomes.

The Public Health Commission will continue to

develop innovative programs to address chronic

disease prevention and wellness promotion in the City

of Boston using strategies focused on increasing

opportunities for healthy eating and safe physical

activity. To support the Mayor’s new anti-obesity

efforts, the FY13 budget includes funding for “Boston

Moves for Health”, a multi-pronged initiative to

promote healthy living for residents.

Violence prevention efforts remain a priority and the

Commission works closely with residents to address

community violence through the Violence Intervention

and Prevention (VIP) initiative and Partnerships

Advancing Communities Together (PACT).

The FY13 appropriation also provides $12.5 million in

funding for Emergency Medical Services (EMS) and

includes funding for a new recruit class of Emergency

Medical Technicians planned for fall/winter 2012.

NOTE: The Public Health Commission (PHC) budget

previously included a $10.75 million direct payment to

the Boston Medical Center (BMC) - the Assistance

Grant - required by the agreement reached when the

City consolidated Boston City Hospital and Boston

University Medical Center Hospital in 1995. This

payment was then used to reimburse the City for the

Boston City Hospital special obligation bond’s annual

debt service. In FY12 the City refinanced the special

obligation debt as general obligation bonds. The debt

for these general obligation bonds is now included in

the City’s centralized debt service account eliminating

the need for the $10.75 annual appropriation for PHC.

School Department The FY13 Boston Public Schools (BPS) budget will

increase by $26.4 million, or 3.2%, from the FY12

appropriation. The FY13 budget was developed using

the Weighted Student Funding (WSF) allocation

model. Using the WSF methodology the funding

follows the student and a school’s allocation is based

on the specific needs on the students enrolled. The

FY13 BPS budget provides for the expansion of seven

high performing schools, adds pre-kindergarten

classrooms for the youngest learners (3 and 4 year

olds), increases training and professional

development for teachers and, strengthens vocational

opportunities by transforming Madison Park High

School. The budget focuses on student health by

increasing the number of school nurses, expanding

student access to school breakfast and will increasing

support for students with social/emotional

impairments.

2 8 S u m m a r y B u d g e t

(See the Innovations in Education chapter of this

volume for more details.)

Reserve for Collective Bargaining The FY13 recommended collective bargaining reserve

includes funding for collective bargaining agreements

that are still outstanding.

Debt Service

The City had expenditures for debt service of $125.5

million in FY10 and $126.7 million in FY11. The City

has a budget of $135.6 million for debt service in FY12

and expects to spend $137.6 million on debt service in

FY13. The City carries a favorable debt position and

debt burden due to well-defined debt policies and a

long-term capital strategy that benefits from non-

property tax support. A history of balanced budgets,

prudent fiscal policies and a conservatively structured

debt profile continue to serve the City well. In March

2012, Moody’s Investors Service and Standard & Poor’s

Rating Services affirmed Boston’s credit rating at Aaa

and AA+, respectively. (Moody’s raised Boston’s credit

rating from Aa1 to Aaa in April 2010, when they

recalibrated their long-term U.S. municipal ratings to

its global scale.) A higher bond rating translates into

lower interest rates and real dollar savings for the

City.

For further detail see the Capital Planning and Financial Management chapters of this volume.

State Assessments Accompanying the local aid distributions on the

State’s cherry sheet are charges to the City from the

Commonwealth. Aside from the assessments for the

Massachusetts Bay Transportation Authority (MBTA)

and Charter School Tuition, state assessments are

relatively small. In accordance with Proposition 2 1/2,

these charges, except for Charter School Tuition,

cannot increase by more than 2.5% annually on a

statewide basis. The City’s state assessments

(inclusive of Charter School Tuition) were $141.9

million in FY10 and $147.7 million in FY11. The City

expects growth in assessments to $162.6 million in

FY12 and to $174.6 million in FY13.

Suffolk County The appropriation for Suffolk County, which is

mandated by State legislation, is included in the Fixed

Costs section of the Budget Summary.

During FY10 State legislation was passed that moved

the Sheriff’s department and its employees to the state

effective January 1, 2010. The one residual liability

that will continue to be a cost for the City is the

unfunded pension liability of current retirees of the

Sheriff’s department, who shall remain as members of

the State-Boston Retirement System (SBRS). The

FY13 annual cost will be level with what was provided

in FY12 for Suffolk County. This funding level will be

required to be paid during the course of the multi-year

pay down. Once the unfunded liability is fully

extinguished, all funding by the City for Suffolk County

shall cease.

Reserve The City is required by law to maintain a reserve on its

balance sheet of 2.5% of the prior year appropriations,

not including the School Department, which has its

own separate reserve. The current balance of this

reserve is $27.5 million. The reserve can be used to

provide for extraordinary and unforeseen

expenditures and the Mayor may make drafts or

transfers against this fund with City Council approval

only in the month of June. Since the establishment of

this reserve, the City has yet to make any drafts or

transfers from the reserve.

State AssessmentsFY10 FY11 FY12 FY13

Actual Actual Budget BudgetM.B.T.A. 74,728,852$ 74,532,457$ 77,760,210$ 78,301,126$ Charter School Tuition 62,020,257 68,292,834 79,761,953 91,441,282 RMV Non-Renewal Surcharge 3,359,720 3,186,780 3,186,780 2,906,560 Other Assessments 1,762,826 1,687,395 1,852,345 1,932,767

141,871,655$ 147,699,466$ 162,561,288$ 174,581,735$

S u m m a r y B u d g e t 2 9

FY10 FY11 FY12 FY13 Inc . /De c .Ca bine t De pa rtme nt Expe nditure Expe nditure Appropria tion Appropria tion 13 vs 12Mayor's Office Emergency Management 284,106 308,122 311,392 311,392 0

Law Department 5,330,590 5,448,039 5,864,016 5,884,722 20,706Mayor's Office 2,019,129 2,054,880 2,173,135 2,199,041 25,906Neighborhood Services 1,257,600 1,181,860 1,280,133 1,255,887 - 24,247Public Information 1,126,647 1,092,647 1,305,584 1,311,130 5,546

Tota l 10,018,072 10,085,547 10,934,261 10,962,172 27,911Advocacy & Strategic InvestmentBoston Residents Job Policy 442,798 440,459 479,621 478,894 - 727

Intergovernmental Relations 1,005,159 1,071,492 1,164,167 1,197,632 33,464Office of New Bostonians 309,204 318,568 336,849 346,841 9,992Small/Local Business 594,363 617,713 621,637 616,134 - 5,503

Tota l 2,351,524 2,448,232 2,602,274 2,639,500 37,227Administration & Finance Office of Administration & Finance 743,536 665,522 833,847 886,337 52,490

Assessing Department 6,492,064 6,323,647 6,347,993 6,518,856 170,863Auditing Department 2,254,051 2,152,641 2,292,644 2,417,373 124,730Budget Management 3,006,838 2,812,751 2,639,982 2,641,827 1,846Execution of Courts 15,969,757 21,021,654 3,500,000 3,500,000 0Graphic Arts Department 1,516,636 0Health Insurance 196,076,530 200,780,123 218,282,804 196,755,586 - 21,527,218Human Resources 3,065,926 3,094,777 3,347,733 3,487,109 139,376Labor Relations 1,370,637 1,324,500 1,411,049 1,443,982 32,933Library Department 29,862,259 30,378,419 30,138,833 31,177,053 1,038,220Medicare Payments 6,594,999 5,697,616 7,924,250 8,280,841 356,591Pensions & Annuities 4,149,212 4,141,672 4,200,000 4,200,000 0Purchasing Division 1,305,957 1,621,172 1,649,633 1,668,329 18,697Registry Division 933,379 965,187 1,046,514 1,012,774 - 33,739Treasury Department 4,227,495 4,208,159 4,313,185 3,911,663 - 401,522Unemployment Compensation 16,318 159,806 350,000 350,000 0Workers' Compensation Fund 2,022,698 1,444,746 2,200,000 2,200,000 0

Tota l 279,608,294 286,792,392 290,478,465 270,451,731 - 20,026,734Chief Information Officer Department of Innovation and Technology 19,337,932 18,576,271 20,576,559 21,749,449 1,172,890

Tota l 19,337,932 18,576,271 20,576,559 21,749,449 1,172,890Public Safety Fire Department 173,632,218 178,020,674 181,950,838 185,483,773 3,532,936

Police Department 282,413,333 275,779,005 269,341,881 278,670,777 9,328,896Tota l 456,045,551 453,799,679 451,292,718 464,154,550 12,861,832

Education Boston Public Schools 817,830,215 821,375,358 831,466,550 857,828,589 26,362,039Tota l 817,830,215 821,375,358 831,466,550 857,828,589 26,362,039

Economic Development Boston Redevelopment Authority 0 0 0 0Tota l 0 0 0 0 0

Public Property Arts, Tourism & Special Events 1,608,366 1,570,325 1,631,239 1,759,761 128,521Consumer Affairs & Licensing 424,014 423,065 441,872 432,631 - 9,241Department of Voter Mobilization 3,808,537 3,235,810 3,582,458 3,398,862 - 183,596Parks & Recreation Department 15,611,363 15,495,353 15,375,474 16,827,314 1,451,840Property & Construction Mgmt. 21,095,297 21,811,969 18,999,620 20,225,288 1,225,668

Tota l 42,547,578 42,536,522 40,030,663 42,643,856 2,613,193Public Works & Transportation Central Fleet Management 2,404,408 2,457,080 2,013,665 2,055,381 41,716

Office of Chief of PWD & Transportation 1,270,559 1,271,077 1,387,668 1,384,570 - 3,097Public Works Department 81,495,461 81,050,263 80,363,998 82,408,248 2,044,250Snow Removal 11,967,496 21,461,489 17,059,444 17,843,045 783,601Transportation Department 30,329,180 29,869,749 30,142,971 29,939,146 - 203,825

Tota l 127,467,104 136,109,658 130,967,746 133,630,391 2,662,645Environment & Energy Environment Department 1,304,262 1,251,527 1,521,048 2,077,449 556,400

Inspectional Services Dept 15,613,457 15,544,850 15,972,042 16,139,849 167,807Tota l 16,917,720 16,796,377 17,493,091 18,217,298 724,207

Human Services Boston Centers for Youth & Families 21,811,328 21,382,933 21,800,073 22,702,295 902,221Civil Rights 315,114 318,360 125,996 125,996 0Commission for Persons with Disabilities 0 315,438 343,579 28,141Elderly Commission 2,846,292 2,818,100 2,798,645 2,886,514 87,869Emergency Shelter Commission 565,480 0Veterans Services Department 4,807,932 5,176,247 5,537,779 5,534,052 - 3,727Women's Commission 158,318 157,999 159,556 161,092 1,535Youth Fund 4,636,922 4,637,150 4,639,184 4,639,184 0

Tota l 35,141,386 34,490,789 35,376,671 36,392,710 1,016,039Housing & Neighborhood DevelopLeading the Way 4,979,000 5,000,000 5,000,000 5,000,000 0

Neighborhood Development 3,410,790 3,332,856 3,741,073 3,883,666 142,593Tota l 8,389,790 8,332,856 8,741,073 8,883,666 142,593

Public Health Public Health Commission 70,000,000 69,808,000 72,902,815 66,209,076 - 6,693,739Tota l 70,000,000 69,808,000 72,902,815 66,209,076 - 6,693,739

Non- Mayoral Departments City Clerk 975,133 969,124 1,008,313 1,009,886 1,573City Council 4,458,130 4,508,925 4,676,230 4,800,230 124,000Finance Commission 219,543 174,346 185,460 188,735 3,274Licensing Board 649,023 599,031 720,079 687,357 - 32,723

Tota l 6,301,828 6,251,426 6,590,083 6,686,207 96,124Gra nd Tota l 1,891,956,992 1,907,403,106 1,919,452,969 1,940,449,195 20,996,226

General Fund Appropriations by Cabinet

3 0 S u m m a r y B u d g e t

1/1/10 1/1/11 1/1/12 1/1/13 ProjectedFTE FTE FTE Projected Inc/(Dec)

Office of the Mayor Law Department 44.0 46.0 48.0 48.0 - Mayor's Off ice 20.0 23.0 24.0 24.0 - Neighborhood Services 22.0 21.0 21.0 21.0 - Off ice of Emergency Preparedness 2.0 1.0 1.0 1.0 - Public Information 17.6 17.6 17.1 19.1 2.0

Total 105.6 108.6 111.1 113.1 2.0 Advocacy & Strategic Investment Boston Residents Job Policy 7.0 6.0 7.0 7.0 -

Intergovernmental Relations 8.7 8.7 9.8 9.8 - Off ice of New Bostonians 5.0 5.0 5.0 5.0 - Small/Local Business 7.0 8.0 8.0 8.0 -

Total 27.7 27.7 29.8 29.8 - Administration & Finance Off ice of Administration & Finance 7.0 7.0 6.0 7.0 1.0

Assessing Department 86.0 85.0 84.0 85.0 1.0 Auditing Department 32.0 30.0 29.0 32.0 3.0 Budget Management 23.9 23.1 23.1 23.1 - Graphic Arts 23.0 - - - - Human Resources 46.6 44.1 47.1 47.1 - Labor Relations 11.0 10.0 10.0 10.0 - Library Department 396.6 382.8 376.1 378.1 2.0 Purchasing Division 18.0 22.0 22.0 22.0 - Registry Division 18.0 18.0 19.0 19.0 - Treasury Department 53.0 50.0 50.0 50.0 -

Total 715.1 672.0 666.3 673.3 7.0 Chief Information Officer Dept of Innovation & Technology (DoIT) 108.0 109.0 112.0 121.0 9.0

Total 108.0 109.0 112.0 121.0 9.0 Public Safety Fire Department 1,560.2 1,572.2 1,571.2 1,627.0 55.8

Police Department 2,870.3 2,903.7 2,875.1 2,910.0 34.9 Total 4,430.5 4,475.9 4,446.3 4,537.0 90.7

Education School Department 8,210.5 8,047.2 8,052.3 8,116.3 64.0 Total 8,210.5 8,047.2 8,052.3 8,116.3 64.0

Public Property Arts, Tourism & Special Events 18.0 17.0 17.0 20.0 3.0 Consumer Affairs & Licensing 6.6 6.6 6.8 6.8 - Department of Voter Mobilization 25.2 23.0 23.0 23.0 - Parks and Recreation 209.0 198.0 200.0 201.0 1.0 Property & Construction Mgmt. 213.6 203.0 199.0 208.0 9.0

Total 472.4 447.6 445.8 458.8 13.0 Public Works & Transportation Chief of Public Works & Transportation 16.0 15.0 16.0 16.0 -

Central Fleet Management 43.0 42.0 38.0 38.0 - Public Works Department 335.0 317.0 312.0 312.0 - Transportation 369.9 349.9 352.9 349.9 (3.0)

Total 763.9 723.9 718.9 715.9 (3.0) Environment & Energy Environment 18.0 17.0 17.0 22.0 5.0

Inspectional Services 225.0 221.0 212.0 215.0 3.0 Total 243.0 238.0 229.0 237.0 8.0

Human Services Boston Center for Youth & Families 374.7 350.6 338.0 345.8 7.8 Civil Rights 9.0 7.0 4.0 4.0 - Commission for Persons w ith Disabilities - - 7.0 7.0 - Elderly Commission 64.0 59.0 63.0 63.0 - Emergency Shelter 4.0 - - - - Veterans Services 15.2 12.2 10.2 12.2 2.0 Women's Commission 2.0 2.0 2.0 2.0 - Youth Fund 4.0 8.0 7.0 7.0 -

Total 472.9 438.8 431.2 441.0 9.8 Neighborhood Development Neighborhood Development 32.9 39.5 29.3 28.5 (0.8)

Total 32.9 39.5 29.3 28.5 (0.8)

Public Health Public Health Commission 797.4 794.2 803.3 820.3 17.0

Total 797.4 794.2 803.3 820.3 17.0 Non-Mayoral City Clerk 13.4 13.4 13.0 14.0 1.0

City Council 82.7 81.6 73.9 81.4 7.5 Finance Commission 3.0 3.0 3.0 3.0 - Licensing Board 8.6 6.6 7.6 7.6 -

Total 107.7 104.6 97.5 106.0 8.5 Grand Total 16,487.6 16,227.0 16,172.8 16,398.0 225.2

Personnel Summary

S u m m a r y B u d g e t 3 1

PERSONNEL CHANGES The Personnel Summary table shows a four-year

comparison of city funded full-time equivalent (FTE)

positions. (This includes both permanent and

emergency employees.) The projected FTE numbers

used for FY13 are estimates based on the personnel

funding levels contained in the FY13 budgets.

FY11- FY12 FTE Changes The total net decrease in FTEs from January 1, 2011 to

January 1, 2012 was 54.2. The City’s Position Review

Committee continued to review all proposed job

postings for vacant positions. All hiring was

scrutinized and only critical positions were approved.

After several years of decreases the School

Department remained fairly level with an overall

increase of 5.1 FTEs. There was a decline in regular

education teachers related to school closings and

mergers as well as efforts to manage class size.

Additional areas that saw reductions in FTEs were

school level administration and other non-academic

support positions. However, the number of bilingual

teachers increased as the School Department

continued to make significant investments in

programs for English Language Learners. The

department also added new specialists to support

students with autism.

Staffing levels in the Public Safety cabinet decreased

by 29.6 FTEs. The Fire Department had little year to

year change with the addition of a new class in

November. The Police Department was down 28.6

FTEs on January 1st because its new class came on

later that month.

The Environment & Energy Cabinet decreased by 9

FTEs. This reduction was due to vacancies in the

Inspectional Services Department.

The Human Services Cabinet’s FTEs declined by 7.6.

This change is mainly a result of Boston Centers for

Youth and Families (BCYF) closing or consolidating

sites with some staff redeployed and vacant positions

eliminated. The Commission for Persons with

Disabilities, formerly a program of Civil Rights,

became a department; 4 positions were transferred

and 3 were added.

The Department of Neighborhood Development

decreased by 10.2 FTEs. The department has left

vacancies unfilled because some positions are partially

funded by federal funding, which is declining.

The Public Health Commission’s city-funded staffing

increased by 9.1 FTEs primarily as a result of taking

in-house many administrative services, previously

provided by Boston Medical Center (BMC), in order to

achieve greater efficiencies.

FY12-FY13 Projected FTE Changes The City projects that the net increase in FTE levels

will be 225.2 from January 1, 2012 to January 1, 2013.

Staffing in the Mayor’s Office Cabinet is projected to

remain constant between January 1, 2012 and January

1, 2013 except for the Office of Public Information.

The department is expected to fill currently vacant

call taker positions in the 24 hour hotline service. The

Advocacy & Strategic Investment Cabinet will also

remain stable.

The Administration & Finance (A & F) Cabinet is

projected to see a staffing increase of 7. One vacancy

will be filled in the A & F Office to support the

citywide effort to revamp the school assignment

process. The Auditing Department will fill vacant

positions as it gears up to provide centralized

Accounts Payable services – a business process change

that will come as a result of a major upgrade to the

city’s financial system.

The projected increase in staffing in the Chief

Information Officer Cabinet/Department of Innovation

Technology (DoIT) is the result of filling vacancies

and adding positions to reduce the City’s reliance on

outside consultants.

Historically, the number of Public Safety employees on

the payroll as of January 1 of any year has fluctuated

with the timing of classes and the timing of

retirements. The Fire Department is projected to

increase by 55.8 FTEs assuming normal attrition and

the hiring of new classes this June and in December.

The timing of the December class will make the

projected January 1, 2013 FTE number higher than

normal. Later that month retirements, which are

typically higher in January than other months, will

cause the number to go down again. The goal of the

department is to have enough firefighters in the

suppression force to cover the minimum manning

level of 262 and to reduce overtime. The projected

increase of 34.9 FTEs in the Police Department is also

based on normal attrition as well as a new police class

in late fall of 2012. As in the case of the Fire

Department, the timing of the fall class will also cause

the January 1, 2013 number to be higher than usual

before retirements begin to bring the number back

3 2 S u m m a r y B u d g e t

down again. It should be noted that the Police

Department is committed to keeping a sworn strength

number that is consistent with the number in place

when the City was receiving funding from the COPS

three year hiring grant. This commitment must be

met in the fourth year when the funding is no longer

available. The department will also add a Director of

Neighborhood Outreach who will be responsible for

daily oversight and coordination of all community

outreach efforts including the formation of new crime

watch groups.

From FY12 to FY13 the School Department is

projecting a net increase of 64 FTEs. This includes

increases in the areas of bilingual education, as the

School Department continues its commitment to

investing in quality programs for English Language

Learners and in special education support. There will

also be an increase in the number of school nurses.

The Public Property Cabinet is projected to have an

increase of 13 FTEs. The majority of the increase is in

the Capital Construction unit of the Property &

Construction Management Department. The City’s

current capital plan, including the large project at

Dudley, will require more project management in

order to keep projects on schedule. A tree climber will

be added to the Parks Department to enable the

department to field two full tree crews daily to keep

up with customer service requests for tree work. The

Office of Arts, Tourism and Special Events will add 3

positions formerly funded through external resources

in the Fund for Boston Neighborhoods.

Staffing in the Public Works & Transportation Cabinet

is projected to decrease by 3 FTEs based on current

levels of staffing. The FTE count in the Environment

& Energy cabinet is expected to increase by 8 based on

current staffing in the Inspectional Services

Department and the addition of 5 new operating

budget positions in the Environment Department.

Two of the new positions in the Environment

Department staff the Energy Management Office and

are currently being funded through an ARRA –EECBG

grant. As this funding expires the two positions will

move to the operating budget to continue the work of

the Office. A third contract position currently being

funded through the grant will move to the operating

budget to continue working as the City’s Outreach

Manager for the Renew Boston energy program.

The Mayor’s Food Policy Council, which is a unit

within the Environment Department, currently has a

Director who is funded through external resources. In

FY13, the Director will move to the operating budget

and a second position will be added.

The Human Services Cabinet is expected to have an

increase of 9.8 FTEs. Boston Centers for Youth and

Families (BCYF), after a two-year reorganization, is

filling vacancies; the projected increase is based on

current staffing levels. The Veterans Department, now

under new leadership, also went through a re-

organization and has filled 2 vacancies subsequent to

January 1, 2012. All other departments in the cabinet

are expected to have level staffing.

Staffing at the Public Health Commission (PHC) is

expected to increase by 17. Emergency Medical

Services (EMS) will have a new EMT class in the fall

or early winter to cover attrition. The Commission will

also add 3 new positions to implement the “Boston

Moves for Health” program.

The FTE counts in the Housing & Neighborhood

Development cabinet are expected to remain level

although there will be a loss in grant funded positions.

The Non-Mayoral group of departments will increase

from January 1, 2012 to January 1, 2013 based on

current and historical staffing levels. (It should be

noted that January 1, 2012 was a low point for the City

Council; vacancies have since been filled.)

EXTERNAL FUNDS The City’s $2.47 billion operating budget is

supplemented by approximately $316.8 million in

external funds. These funds consist mainly of federal,

state and private funding earmarked for specific

purposes. Education, housing, economic development,

public safety and public health are some of the largest

areas for which these funds are targeted.

Twenty-four departments and agencies expect to

receive federal, state or other forms of external

funding in FY13. Since there are hundreds of grants

and many of them are small, the focus here is on the

largest grants. Nearly 94% of the City’s external funds

are found in seven of those twenty-four departments.

These seven departments are the School Department,

Neighborhood Development, Public Health

Commission, Office of Emergency Management, Police

Department, Library Department and the Parks and

Recreation Department. Other departments that also

have significant grant funding are the Elderly

Commission and the Transportation Department.

S u m m a r y B u d g e t 3 3

Descriptions and amounts for grants by department

can be found in Volumes II and III.

Federal and State Grants Federal grants provide funding for key City priorities.

In February of 2009, President Barack Obama signed

the American Recovery and Reinvestment Act (ARRA)

– a significant investment nationwide in areas

including education, public safety, housing, clean

energy and infrastructure. The City of Boston

receives ARRA funds in three ways: direct

appropriation from the federal government,

competitive grants from the federal government and

competitive grants from the Commonwealth of

Massachusetts. ARRA funds have been provided for

transportation projects such as Dorchester Avenue,

traffic signal and traffic management upgrades and a

$21 million citywide paving program all of which are

managed by the Massachusetts Department of

Transportation.

The Department of Neighborhood Development

received ARRA funds for increased levels of

Community Development Block Grants, Homeless

Prevention and Rapid Re-Housing Grants and

Neighborhood Stabilization Grants. The Police

Department received an ARRA- Byrne Justice

Assistance Grant to retain fifty police officers

scheduled for layoff and was also successful in

securing a competitive ARRA Community Oriented

Policing Services (COPS) hiring grant totaling more

than $11.8 million over three years to retain fifty

police officers who were scheduled to be laid off in

October 2009.

The School Department had received increased ARRA

allocations for Individuals with Disabilities Education

Act (IDEA) and Title I grants as well as allocations of

ARRA funding from the Commonwealth of

Massachusetts State Stabilization grant in lieu of state

dollars that would have been allocated through

Chapter 70, traditional state aid for education. In

FY12 the School Department will exhaust its ARRA

funding for Title I and IDEA but will continue to

receive standard allocations from those two sources in

FY13.

The School Department will exhaust its ARRA –

Education Jobs Program funding in FY12, however,

ARRA-Race to the Top, ARRA School Improvements at

Burke High School and UP Academy and the ARRA-

Title I School Improvement grant will continue into

FY13.

The City continues to receive Community

Development Block Grant (CDBG) and HOME funding

for a variety of neighborhood development activities

but at reduced funding levels. Other sources of

federal funding received by the City are used to

address diverse needs and/or creative approaches

such as homeland security, community policing and

housing support for the homeless. The Environment

Department received an ARRA-Energy Efficiency

Block Grant that will end in FY13. The ARRA- Solar

Market Transformation Grant will expire in FY12.

Descriptions of the largest federal and state supported

programs in the departments managing the bulk of the

City’s external fund resources are given below.

School Department

The School Department’s FY13 general fund budget of

$857.8 million is supplemented with approximately

$143 million in external funds, largely consisting of

grants made directly to the Boston Public Schools

from state and federal government entities. There are

three main categories of external funding: formula

grants, competitive grants, and reimbursement grants.

Title I of the No Child Left Behind Act (NCLB), the

school lunch reimbursement program, and resources

allocated in support of the Individuals with

FY11 FY12 FY13Expenditure Estimated Estimated

Boston Public Schools 170,324,654 162,215,921 142,973,021Neighborhood Development 64,843,669 75,429,829 70,000,359Public Health Commission 51,911,629 47,902,217 43,507,006Emergency Management 8,291,611 12,966,878 14,770,643Police Department 10,795,904 16,068,175 11,134,355Library Department 7,805,960 6,516,456 8,202,933Parks & Recreation Department 6,688,658 6,247,858 8,027,890Other 21,469,211 32,247,185 18,140,580

342,131,296 359,594,520 316,756,786

External Funds

3 4 S u m m a r y B u d g e t

Disabilities Education Act (IDEA) are the three

largest sources of external funding and comprise the

bulk of federal support. The Title I and IDEA grant

programs were expanded with the American Recovery

and Reinvestment Act (ARRA). Other significant

sources of external funding include Title II (teacher

quality grant), the special education “circuit breaker”

reimbursement, and the Community Partnership

grant.

Title I - This federal program supplements education

in schools with significant populations of low-income

students. This key source of funding for the Boston

Public Schools makes up a large portion of the federal

formula grant funding received. The School

Department estimates spending levels for Title I to be

$40.8 million in FY12 and reduced to $36.3 million in

FY13. Title I schools will also have access to the ARRA

Title I School Improvement grant that targets

improvements and corrective action for the lowest

performing schools called turnaround schools. This

program expects to spend $7.5 million in FY12 and

FY13.

School Lunch - The School Lunch program,

administered by the U.S. Department of Agriculture,

reimburses local school districts on a per-meal basis

for the costs of breakfast and lunch for low-income

students. The School Department expects to receive

$27.4 million in reimbursements in FY12 and $27.9

million in FY13.

Title II Teacher Quality – The School Department

expects to spend $7.1 million in FY12 and $5.5 million

in FY13 from this federal formula grant program to

improve teaching and learning.

Individuals with Disabilities Education Act (SPED-

IDEA) - This federal formula grant supports special

education programs. The amount budgeted by the

School Department in both FY12 and FY13 is $19.1

million.

ARRA–Race to the Top – This competitive grant was

created to reward states and school districts that

create conditions for education innovation and reform.

ARRA – Race to the Top funding seeks to impact

teacher effectiveness, school curriculum and culture

and to target improvements to the lowest achieving

schools while readying students for college and the

workplace. The School Department expects to spend

$9.6 million in FY12 and $16.5 million in FY13.

Education Jobs Funding – This funding provided

through federal legislation approved by the President

in August 2010 was distributed to cities and towns by

the Commonwealth of Massachusetts using the same

formula it uses for Chapter 70 state aid. These funds

are being used to support School Department staff.

The department expects to spend $10.2 million in

FY12. Funding has not been reauthorized for FY13.

Community Partnerships for Children - The

Community Partnership Program is a state program

that creates comprehensive, high-quality programs for

preschool-aged children in public preschools, Head

Start centers, private day care centers and family-

based day care centers. The amount budgeted by the

School Department, which serves as the fiscal agent

for this program, is $1.3 million for both FY12 and

FY13.

Title III Bilingual Language Acquisition Program –

This Federal grant provides for investments in English

language learners (ELLs), including summer learning

academies for ELLs, professional development for

teachers and coaches and family liaisons. The

department expects to spend $2.9 million in FY12 and

FY13.

Quality Full-Day Kindergarten – This grant from the

Commonwealth of Massachusetts is used for extended

time at the Early Learning Centers (ELCs) and Early

Education Centers (EECs). The department expects

to spend $2.1 million in FY12 and FY13. 

Summer Food Program – This Federal grant provides

support to feed children in summer school and

summer activities held in schools, community centers

and community – based organizations. The

department expects to spend $1.7 million in FY12 and

FY13.

21st Century Community Learning –This Federal grant

provides extended learning opportunities for at risk

students. The department expects to spend $1.5

million in FY12 and FY13.

Expanded Learning Time – This grant from the

Commonwealth of Massachusetts provides funding for

extended teaching time at the Edwards Middle School

and Boston Arts Academy. The department expects to

spend $2.7 million in FY12 and $1.2 million FY13.

TILT - Turnaround with Inc Learn Time – This

Federal grant will extend the day at the McCormack

and Irving schools for the next three years. The

department expects to spend $1.1 million FY13.

S u m m a r y B u d g e t 3 5

Neighborhood Development

The External Funds budget for the Department of

Neighborhood Development (DND) is projected to

decrease by 7.2% in FY13. The decrease primarily

comes from expiring one-time grants provided by the

American Recovery and Reinvestment Act (ARRA)

including ARRA-CDBG, ARRA-Homeless Prevention

and Rapid Re-housing and ARRA Neighborhood

Stabilization, as well as a decrease in funding for

CDBG and HOME grants.

Community Development Block Grant (CDBG) –

CDBG is an annual entitlement grant from the U.S.

Department of Housing and Urban Development

(HUD) to the City of Boston. The CDBG program

funds a variety of neighborhood development

activities. The City’s Department of Neighborhood

Development (DND), the Fair Housing Commission

and the Mayor’s Office of Jobs and Community

Services expect to spend $21.2 million in FY12 and

$19.9 million in FY13. At least 70% of CDBG funds

must be used to benefit low- and moderate-income

households. The City uses CDBG funds to produce and

preserve affordable housing, revitalize neighborhood

commercial districts, assist the renovation of non-

profit facilities, improve vacant lots, promote and

monitor fair housing activities, and assist non-profit

organizations in the operation of emergency shelters,

health care, youth and adult literacy programs. CDBG

funds cannot be used for general government services

and cannot replace funding cut from existing public

service activities. CDBG funding is also used as

security for Section 108 loans.

Section 108 Loan Project/Economic Development

Initiative - Section 108 funds are available to eligible

cities from HUD on an application basis and can only

be used for economic development projects. The City

receives and administers Section 108 funds through a

pledge of its current and future CDBG grant awards.

DND will continue its Boston Invests in Growth II

Program in FY13 with projected spending of $10

million.

Emergency Solutions Grant/HOPWA/Shelter Plus

Care/Supportive Housing - The City expects to spend

$21.8 million from these four HUD grants in FY12 and

another $23.1 million in FY13. The Emergency

Solutions Grant, formerly known as the Emergency

Shelter Grant, and the Housing Opportunities for

Persons With AIDS Grant (HOPWA) are entitlement

grants that become available each July. The

Emergency Solutions Grant supports the development

and operation of emergency shelters for the homeless

and the HOPWA program provides housing, rental

assistance and support services for persons with AIDS.

The Shelter Plus Care program provides rental

assistance for homeless people with disabilities,

primarily those with serious mental illness or chronic

problems with alcohol and/or drugs. Other federal,

state or local sources provide support services that

must match the value of the rental assistance. The

Supportive Housing Program provides service,

operating, and/or capital funds for a broad range of

housing and social service projects. The program

requires that applicants match the amount of

supportive housing acquisition and development funds

requested with an equal amount of funding from other

sources. Shelter Plus Care and Supportive Housing

are both competitive grants with FY13 awards

becoming available in the fall.

HOME Investment Partnership - The HOME

Partnership Program is an entitlement grant from

HUD to support the development of affordable

housing. The City estimates spending $9.3 million in

FY12 and $6.2 million in FY13. Eligible activities

include new construction or rehabilitation of housing,

tenant-based rental assistance for up to two years, and

assistance to first-time homebuyers. All HOME funds

must be used to benefit low and moderate-income

households. Fifteen percent of HOME funds are set

aside for projects sponsored by Community Housing

Development Organizations. Up to five percent may be

set aside for operating costs for Community Housing

Development Organizations.

Neighborhood Stabilization Program Two (NSP2) –

NSP2 is the second round of funding made available

through a competitive application process from HUD

as authorized by the American Recovery and

Reinvestment Act of 2009. DND received a grant award

of $13.6 million in mid FY10. These funds are used to

support the City’s efforts to reclaim and re-occupy

abandoned bank owned properties and turnkey

development. An estimated $6.9 million will be

expended in FY12 and an estimated $1.8 million will

be expended in FY13.

Choice Neighborhoods Implementation Grant and

Community Planning Challenge Grant – In FY12 DND

was awarded two new competitive grants from the US

Department of Housing and Urban Development

(HUD). The Choice Neighborhoods Implementation

Grant aims to link affordable housing with quality

schools, public transportation, good jobs, and safe

streets. Specifically, funds will be used to redevelop

the Woodledge/Morrant Bay Apartments and revitalize

3 6 S u m m a r y B u d g e t

Dorchester’s Quincy Street Corridor. The City

anticipates spending $1 million on this program in

FY12 and an estimated $4 million in FY13. The

Community Planning Challenge Grant is being used for

planning, strategic land acquisition, and outreach and

engagement in order to facilitate smart growth and

transit-oriented development along the Fairmount

Commuter Rail Line. The City anticipates an

estimated $613,000 of spending on this project in

FY13.

Public Health Commission

Ryan White Care Act - This funding is intended to help

communities increase the availability of culturally and

linguistically competent primary health care and

support services, increase access for underserved

populations and improve the quality of life of those

living with HIV/AIDS and their families. In FY12,

contracts supported approximately 42 community

agencies and 95 programs in the ten county regions of

Massachusetts and southern New Hampshire. The

estimated level of spending for this federally funded

program is $13.8 million for FY13.

ARRA – CPPW – The Commission is in the final year of

grant funding from the Centers for Disease Control’s

Communities Putting Prevention to Work program

under the ARRA initiative. The Obesity, Physical

Activity, and Nutrition grant provided $6.4 million over

two years to work on programs and policies to

decrease consumption of sugar-sweetened beverages,

increase active transit including a new bike share

program, improve neighborhood-based food

production and distribution, and enhance efforts to

integrate physical activity into the school day. The

Tobacco Prevention grant of $6.1 million over two

years, funded a variety of activities in the Healthy

Homes Division including work to engage youth and

community members in policy efforts to reduce youth

tobacco use and exposure and to increase the number

of available smoke free housing units. PHC has

received a non-cost extension from the CDC for these

grants ending in January 2013.

Homeless Services – External funding for the Long

Island Shelter provides services to homeless clients in

the form of shelter, food, clothing, health care, and

social services for up to 800 homeless adult men and

women on a daily basis. The Shelter also provides

training and support services to 3,815 homeless

individuals annually. Funding from the Substance

Abuse Mental Health Services Administration

(SAMHSA) provides supportive housing to chronically

homeless clients with co-occurring mental illness and

substance abuse issues. Emergency Shelter clients

receive Section 8 vouchers from the Boston Housing

Authority and community-based management services

over a 9-12 month period. Overall, projected external

funding for homeless services in the Public Health

Commission budget for FY13 totals $9.3 million.

Addictions Prevention, Treatment and Recovery

Service – A $1.5 million, 3 year grant, from SAMHSA

funds the Entre Familia: Comprehensive Family

Service Model (CFSM). Programs will provide an

intensive outpatient substance abuse treatment which

includes enhanced group, individual and case

management services for pregnant women. Through

state funding totaling $460,000 in FY13, the

Commission will support eight neighborhood-based No

Drugs Coalitions to develop strategic substance abuse

prevention plans. The Massachusetts Department of

Public Health is expected to provide $431,000 for FY13

in the support of BPHC’s HIV/AIDS Prevention

Screening.

Early Childhood Mental Health -The Commission has

leveraged $2 million in funding from the

Massachusetts Executive Office of Health and Human

Services and $784,588 in funding from the

Massachusetts Department of Public Health (federal

pass through from SAMHSA) to build a continuum of

family centered care and support for children with

mental health needs and their families. Other funding

from the US Department of Justice funding totaling

$1.1 million will allow the Commission to expand its

work with partners to prevent and reduce the impact

of children’s exposure to violence in homes,

communities and schools. Through collaboration of

diverse organizations and agencies, a multi-year

strategic plan will be developed to address children’s

exposures to violence.

Boston is one of eight demonstration sites for the U.S.

Attorney General’s Defending Childhood

Demonstration Initiative, a U.S. Department of Justice

initiative focused on addressing children’s exposure to

violence. The Centers for Disease Control and

Prevention designated the Boston Public Health

Commission as one of the agencies to lead a Violence

Intervention Prevention (VIP) Initiative through its

Boston STRYVE funding for a five year grant totaling

$1.1 million. The Boston Public Health Commission

will work closely with government and community-

based partners, as the lead agency for several

S u m m a r y B u d g e t 3 7

innovative programs designed to address youth

violence in our target neighborhoods.

Public Health Preparedness -The Commission

manages a number of critical initiatives to ensure that

the residents of the City are protected and well

prepared in the event of a major emergency. Among

these activities are those funded by federal/ state

grants totaling $1.57 million to support public

communication strategies, communicable disease

control, and the public health preparedness program.

Other state and federally funded programs support

training EMTs, hospital clinicians, and health center

workers in various medical emergency protocols and

procedures; leading collaborative citywide disaster

planning with other healthcare, public safety, and

emergency management officials; recruitment and

training of a corps of medical and non-medical

volunteers who can be mobilized as needed; and

writing, translating, and disseminating educational

materials to the City’s most vulnerable populations.

Federal funding also supports violence prevention

work in our neighborhoods and efforts to improve air

quality in homes and small businesses. The

Commission continues to receive support for the

Boston Healthy Start Initiative, a multi-year project with a budget for $2.1 million for FY13 to reduce the

rate of infant mortality among Black babies.

Office of Emergency Management

The Mayor’s Office of Emergency Management pursues

funding opportunities and manages federal homeland

security grants awarded to the Metro-Boston

Homeland Security Region (MBHSR). The Urban

Area Security Initiative (UASI) grant provides the

bulk of the funding for this office. This federal grant

serves to address the unique equipment, planning,

training and operational needs for first responders in

the MBHSR. The region encompasses the cities of

Boston, Cambridge, Chelsea, Everett, Quincy, Revere,

Somerville and the towns of Brookline and Winthrop.

Despite a 40% reduction in UASI funding for FFY13,

there is an estimated $11.6 million that will be

available for spending in FY13. UASI grants are

awarded based on the Federal Fiscal Year; therefore,

funding cuts will likely not impact the City until FY14.

Emergency Management received two grants provided

by the American Recovery and Reinvestment Act

(ARRA). The ARRA Port Security Grant allows the

City’s public safety agencies to procure equipment to

protect against and respond to critical incidents

including potential acts of terrorism in the Port of

Boston. The ARRA Local Energy Assurance and

Planning (LEAP) Initiative grant of $150 thousand

supports planning for recovery from potential

disruptions to energy supply, enhanced reliability and

supports quicker restorations of outages.

In FY12 Emergency Management received a Public

Safety Interoperable Communications (PSIC) Grant

from the Department of Commerce and the

Commonwealth of Massachusetts’s Executive Office of

Public Safety and Security. The PSIC Grant Program is

a one-time grant opportunity to enhance interoperable

capabilities with respect to voice, data, and/or video

and encourage the use of innovative cost and

spectrum efficient technology solutions. There will be

an estimated $517,000 of spending in FY12 and $1.9

million in FY13.

Additionally, the office receives funding under the

Regional Catastrophic Preparedness Grant Program

(RCPGP). This federal grant is designed to enhance

regional catastrophic planning efforts, with the goal of

strengthening the Nation against risks associated with

catastrophic events. The Region includes communities

from Massachusetts, New Hampshire, and Rhode

Island. Spending from RCPGP is expected to be $2.3

million in FY12 and $874,000in FY13.

Police Department

The Police Department’s grant funding on both the

federal and state level has historically focused for the

most part on community policing. The majority of the

federal grants awarded under the American Recovery

and Reinvestment Act (ARRA) focused on hiring and

retaining police officers and civilians who would have

otherwise been laid off in 2009 and 2010.

ARRA- Community Oriented Policing Services (COPS)

Hiring Recovery Grant - The department successfully

secured a competitive grant totaling more than $11.8

million over three years to retain fifty police officers

who were scheduled to be laid off in October 2009.

The department expects to spend an estimated $4.3

million in FY12 and the remaining $1.1 million in

FY13. The City is responsible for the cost of retaining

the 50 officers in the fourth year.

Community Oriented Policing Services (COPS) Hiring

Program - The Police department will use this new

grant to increase staffing on Safe Street Teams by 15

officers and expects to spend $418 thousand in FY13.

The successful award of this new COPS grant requires

a local match that has been included in the FY13

operating budget. Safe Street Teams engage Boston

3 8 S u m m a r y B u d g e t

police officers in community problem-oriented

policing of violent crime hot spot areas.

Justice Assistance Grant (JAG) – This federal grant is

awarded by the Department of Justice for prevention,

intervention and enforcement efforts aimed at

reducing crime and violence. These funds are used to

support civilian analyst and advocacy personnel, as

well as district social workers. The department

expects to spend $1 million in FY12 and $548,000 in

FY13.

Smart Policing Grant – This federal grant is awarded

by the Department of Justice, Bureau of Justice

Assistance for the purpose of improving Boston’s

homicide clearance rates. The funds will be used to

develop and implement a business model for homicide

investigators, increase accountability via structure

and communication feedback loops, and increase

resources available to BPD units involved in homicide

investigations. The department expects to spend an

estimated $180,000 in FY12 and $300,000 in FY13.

Community Based Violence Prevention Demonstration

Grant – This three-year federal grant is awarded by

the Department of Justice, Office of Juvenile Justice

Delinquency Prevention for the purpose of

implementing a coordinated strategy for the

prevention of gun violence in the Mattapan

neighborhood of Boston. The Boston Police

Department, in partnership with the Boston Public

Health Commission, Boston Center for Youth and

Families, and the Mayor’s Office of Jobs and

Community Services will work to establish a program

that focuses on the goal of reducing the number of

shootings and homicides in the Mattapan

neighborhood of Boston. New in FY13, the department

expects to spend $733,000.

Second Chance Act Adult Prisoner Reentry Initiative –

This federal grant is awarded by the Department of

Justice, Bureau of Justice Assistance for the purpose

of providing a continuation of support and

enhancement of services delivered through the Boston

Reentry Initiative (BRI). Through the BRI, the Boston

Police Department in partnership with the Suffolk

County Sheriff’s Department, the Suffolk County

District Attorney’s Office, the United States Attorney’s

Office, the Massachusetts Departments of Probation,

Parole, and Revenue; Community Resources for

Justice, Youth Options Unlimited, Boston Ten Point

Coalition, Whittier Street Health Center, and

Dorchester Bay Economic Development Corporation

supports individualized, sustained reentry plans for

Boston’s highest-risk offenders. The department

expects to spend $866,000 in FY12 and $601,000 in

FY13.

Boston Multicultural Advocacy Support Project

(BMASP) – This federal grant is awarded by the

Department of Justice, Office of Violence Against

Women. Funds are used to support three full time

civilian advocates at police stations in Boston and five

part-time civilian advocates at the Family Justice

Center and Dorchester Court who provide culturally

and linguistically sensitive services, crisis intervention

services, referrals, and safety plans to the City’s

African-American, Hispanic/Latino, Cape Verdean,

Haitian and Vietnamese populations. The department

expects to spend $693,000 in FY12 and $321,000 in

FY13.

Shannon Community Safety Initiative – This state

grant is awarded from the Commonwealth of

Massachusetts, Executive Office of Public Safety to

address gang and youth violence through the Senator

Charles E. Shannon, Jr. Community Safety Initiative.

The award has supported a number of prevention,

intervention and enforcement initiatives and activities

that focus on a comprehensive citywide strategy for

youth gang and gun violence. The department expects

to spend an estimated $1.8 million in FY12 and $1

million in FY13.

Library Department

Projected external fund spending is expected to

increase in FY13 to $8.2 million primarily related to

additional Trust Fund Income allocated by the

Trustees of the Boston Public Library. With

significant reductions to the Library for the

Commonwealth grant in the FY10 state budget and the

elimination of the Boston Regional Library System in

FY11, the Library is expected to have only $2.8 million

available in state resources for FY12 and FY13. The

three state programs that have historically supported

the Library’s budget are described below.

Library for the Commonwealth (formerly Library of

Last Recourse) - The Library for the Commonwealth

grant provides reference and research services for

individual residents of the Commonwealth at the

Boston Public Library through developing, maintaining

and preserving comprehensive collections of a

research and archival nature to supplement library

resources available throughout Massachusetts. The

S u m m a r y B u d g e t 3 9

Library maintains the personnel resources, expertise

and bibliographic skills needed to develop and provide

access to reference and research collections. Funding

for this program is approximately $2.2 million for FY12

and FY13.

Boston Regional Library System - The Boston Regional

Library System Program (BRLS) was one of six

systems that were part of a state-funded program to

provide supplemental services to libraries in the cities

of Boston, Malden and Chelsea. Due to cuts in the

FY11 budget, the Massachusetts Board of Library

Commissioners has led a process to consolidate

regional services into a single organization called the

Massachusetts Regional Library System. The BRLS,

formerly housed at the Boston Public Library, was

absorbed into this merged system in FY11. Funds for

BRLS supported enhanced reference and information

services, interlibrary loan and journal document

delivery, continuing education and staff development,

consulting on library operations and a variety of

cooperative programs. Funding for the BRLS was

eliminated in FY11.

State Aid to Libraries - This funding is provided by the

Commonwealth of Massachusetts Board of Library

Commissioners to the Trustees of the Public Library of

the City of Boston annually. The Library is required to

meet certain minimum standards of free public library

service established by the Board to be eligible to

receive the grant. The Boston Public Library expects

to receive $562,030 in both FY12 and FY13.

Parks and Recreation Department

The external funds budget for the Parks and

Recreation Department is $8 million in FY13. In FY13

there are four sources of external funds to support

parks: the Fund for Parks and Recreation, the George

W. Parkman Trust Fund, Park Floodlighting Fees and

The Ryder Cup Trust Fund.

Fund for Parks and Recreation – This trust fund

established in 1983 furthers the maintenance and

preservation of parks belonging to the City of Boston,

now or in the future, and provides recreational

programs for the City’s residents. Spending is

expected to be $4.7 million in FY12 and $5.2 million in

FY13.

George W. Parkman Trust Fund – The Parkman fund

annually provides additional funding to maintain and

improve the Parkman Parks including the Boston

Common, Public Garden, Franklin Park and the Fens.

This includes tree work, repairs to roads, turf, and

funding for maintenance employees working in these

parks. In both FY12 and FY13 spending is expected to

be $1 million.

Park Floodlighting Fees – Floodlighting fees are

charged to non-resident and resident adult member

organizations that conduct permitted night-time

activities which require the use of the floodlights at

City parks. Spending is expected to be $350,000 in

FY12 and $300,000 in FY13.

The Ryder Cup Trust Fund – The Ryder Cup/Youth

Endowment Fund was formed from the proceeds of

tickets to the 1999 Ryder Cup matches. The income

from the fund is used to support youth golf

programming and other youth recreation activities.

Spending is an estimated $25,000 in FY12 and $30,000

in FY13.

Fairview Cemetery Trust Fund – This trust fund was

appropriated by the Boston City Council in December

2011 from the general Cemetery Trust Fund

established under Chapter 13 of the Acts of 1961. $1.5

million is expected to be spent in FY13 to expand the

number of burial plots.

FY13 ALL FUNDS BUDGET

The following table consolidates the projected FY13

expenditures from the General Fund, Special Revenue

Funds (external grants for the most part) and the

Capital Fund by department. More detail on the

expenditures made from each of these funds is shown

in Volumes II and III of the City of Boston’s FY13

budget document.

Budget Document Structure The Operating Budget for FY13 and Five Year Capital

Plan for FY13-17 are presented in three volumes.

Volume I is an overview of the City’s financial position

and policy direction.

Volumes II and III, which are organized by cabinet,

present the budget detail for each department’s

operating budget and capital projects. Please refer to

the chapter on Budget Organization and Glossary in

Volume I for an illustration of the City’s organizational

chart.

The City’s budget is built at the program level for each

department, which is the basis for budget planning.

However, line item budget detail is only provided in

this budget document at the department level.

Program line item detail is available upon request.

4 0 S u m m a r y B u d g e t

In addition to program budgets, Volumes II and III

provide a mission statement, key objectives, as well as

past and promised performance levels for each

departmental program. For those departments with

capital projects, a project profile is provided for every

capital project. The project profile includes

authorization information as well as planned spending

levels.

Definitions of the terms used throughout the budget

document are presented in the glossary, which can be

found in Volume I in the chapter titled Budget

Organization and Glossary.

S u m m a r y B u d g e t 4 1

Ge ne ra l Fund Exte rna l Funds Ca pita l Tota l All FundsCa bine t De pa rtme nt Budge t Budge t Budge t Budge tMayor's Office Emergency Management 311,392 14,770,643 15,082,034

Law Department 5,884,722 5,884,722 Mayor's Office 2,199,041 89,989 2,289,030 Neighborhood Services 1,255,887 1,255,887 Public Information 1,311,130 1,311,130

Tota l 10,962,172 14,860,632 0 25,822,803Advocacy & Strategic Investment Boston Residents Job Policy 478,894 478,894

Intergovernmental Relations 1,197,632 1,197,632 Office of New Bostonians 346,841 167,500 514,341 Small/Local Business 616,134 616,134

Tota l 2,639,500 167,500 0 2,807,000Administration & Finance Office of Administration & Finance 886,337 886,337

Assessing Department 6,518,856 6,518,856 Auditing Department 2,417,373 1,095,005 3,512,378 Budget Management 2,641,827 2,641,827 Execution of Courts 3,500,000 3,500,000 Health Insurance 196,755,586 196,755,586 Human Resources 3,487,109 3,487,109 Labor Relations 1,443,982 1,443,982 Library Department 31,177,053 8,202,933 18,768,832 58,148,818 Medicare Payments 8,280,841 8,280,841 Pensions & Annuities 4,200,000 4,200,000 Purchasing Division 1,668,329 1,668,329 Registry Division 1,012,774 1,012,774 Treasury Department 3,911,663 3,911,663 Unemployment Compensation 350,000 350,000 Workers' Compensation Fund 2,200,000 2,200,000

Tota l 270,451,731 9,297,938 18,768,832 298,518,501Chief Information Officer Department of Innovation and Technology 21,749,449 2,218,631 19,500,000 43,468,079

Tota l 21,749,449 2,218,631 19,500,000 43,468,079Public Safety Fire Department 185,483,773 407,887 7,535,000 193,426,661

Police Department 278,670,777 11,134,355 3,974,918 293,780,050 Tota l 464,154,550 11,542,243 11,509,918 487,206,711

Education Boston Public Schools 857,828,589 142,973,021 43,892,096 1,044,693,706 Tota l 857,828,589 142,973,021 43,892,096 1,044,693,706

Economic Development Boston Redevelopment Authority 0 2,138,000 2,138,000 Tota l 0 0 2,138,000 2,138,000

Public Property Arts, Tourism & Special Events 1,759,761 133,320 1,893,081 Consumer Affairs & Licensing 432,631 51,300 483,931 Department of Voter Mobilization 3,398,862 3,398,862 Parks & Recreation Department 16,827,314 8,027,890 18,947,111 43,802,315 Property & Construction Mgmt. 20,225,288 178,299 36,485,575 56,889,162

Tota l 42,643,856 8,390,809 55,432,686 106,467,351Public Works & Transportation Central Fleet Management 2,055,381 2,055,381

Office of Chief of PWD & Transportation 1,384,570 1,384,570 Public Works Department 82,408,248 37,900 61,640,465 144,086,613 Snow Removal 17,843,045 17,843,045 Transportation Department 29,939,146 2,470,185 11,054,839 43,464,170

Tota l 133,630,391 2,508,085 72,695,304 208,833,780Environment & Energy Environment Department 2,077,449 1,152,970 450,000 3,680,419

Inspectional Services Dept 16,139,849 214,922 16,354,771 Tota l 18,217,298 1,367,892 450,000 20,035,190

Human Services Boston Centers for Youth & Families 22,702,295 1,152,944 8,630,606 32,485,844 Civil Rights 125,996 724,875 850,870 Commission for Persons with Disabilities 343,579 343,579 Elderly Commission 2,886,514 6,736,285 9,622,799 Veterans Services Department 5,534,052 5,534,052 Women's Commission 161,092 161,092 Youth Fund 4,639,184 1,262,657 5,901,841

Tota l 36,392,710 9,876,761 8,630,606 54,900,077Housing & Neighborhood Developme Leading the Way 5,000,000 5,000,000

Neighborhood Development 3,883,666 70,000,359 2,300,000 76,184,025 Tota l 8,883,666 70,000,359 2,300,000 81,184,025

Public Health Public Health Commission 66,209,076 43,507,006 1,768,137 111,484,219 Tota l 66,209,076 43,507,006 1,768,137 111,484,219

Non- Mayoral Departments City Clerk 1,009,886 45,910 1,055,796 City Council 4,800,230 4,800,230

Finance Commission 188,735 188,735 Licensing Board 687,357 687,357

Tota l 6,686,207 45,910 0 6,732,117Gra nd Tota l 1,940,449,195 316,756,786 237,085,579 2,494,291,560

All Funds Budgets - FY13

4 2 S u m m a r y B u d g e t

MULTI-YEAR BUDGET PLAN

Introduction While statutorily the City must maintain an annual

budget process subject to the appropriating authority

of the City Council, a two year projection provides a

useful context for current decision making and

planning purposes.

In projecting the City’s operating budget for FY14 and

FY15, the issues of health insurance cost growth and

collective bargaining continue to be critical factors.

The recent uncertainty around the nascent economic

recovery has eased somewhat making revenue

estimation less difficult. The property tax levy is

expected to grow from its base by the allowable 2.5%

and new growth in the levy is expected to inch up over

the FY13 budgeted amount. In terms of state aid,

there will continue to be risk to the City’s allocation of

aid until the economy fully recovers and even then

growth is not assured.

The projections for FY14 and FY15 are based on the

most current revenue information available. The plan

reflects the best estimates of revenues as well as the

major components of projected expenditures given

current policy and cost trends. Please note that all of

the City’s collective bargaining agreements had

expired in FY10 or shortly thereafter. The

negotiations underway for successor collective

bargaining agreements covering the fiscal years of

FY11 - FY13 and beyond have been completed for some

unions establishing a wage pattern for ongoing

negotiations. A reserve for collective bargaining has

been established for the outstanding contracts based

on the wage pattern. Any changes to the pattern will

add additional pressure to the bottom line in FY14 and

FY15.

Another area of concern that has not been fully

illustrated in the Budget Summary table is the

unfunded liability related to other post-employment

benefits. Beginning in FY08, the City was required to

implement the provisions of GASB Statement No. 45.

The statement establishes standards for the

measurement, recognition and display of Other Post-

Employment Benefits (OPEB) liabilities. The City

currently provides post-employment health care and

life insurance benefits to eligible retirees in

accordance with state law and pays its share of the

cost on a pay-as-you-go basis in the current year’s

operating budget. This method of financing greatly

understates the full obligation to provide these

benefits after retirement. Although funding OPEB is

currently not a legal requirement, the City has

established an irrevocable OPEB Liability Trust Fund

to which contributions of $135 million have been made

through appropriations approved in FY08 – FY12. An

independent actuarial valuation estimates the City’s

total unfunded OPEB obligation at June 30, 2011 at

$3.1 billion. The City faces the challenge of addressing

the funding needs of this liability while continuing to

balance all of the other costs of running a major city.

The FY13 budget authorizes another

“acknowledgement payment” of $40 million to the

City’s OPEB Liability Trust Fund; the FY14 and FY15

projections also include $40 million payments.

Revenue Trends The following chart displays the breakdown of revenue

projected for FY13 – FY15. (Figure 12.)

Major revenue trends for FY14 & FY15 include:

Property Tax Levy: The levy in each year will grow by

the allowed 2.5% increase and a projected $27.0

million and $30.0 million of new growth in FY14 and

FY15, respectively. The net property tax assumes an

overlay reserve set at 2.5%.

State Aid: State aid is projected to increase marginally

in FY14 and then increase by over $30.0 million in

FY15. This increase is due almost entirely to an

$0.0B

$0.3B

$0.5B

$0.8B

$1.0B

$1.3B

$1.5B

$1.8B

$2.0B

$2.3B

$2.5B

$2.8B

$3.0B

FY13 FY14 FY15

Figure 12

Recurring RevenueFY13 Budget, FY14 & FY15 Projected

Reserves

OtherRevenue

Fines

Excises

State Aid

Net PropertyTax

S u m m a r y B u d g e t 4 3

increase in the Charter School Tuition

Reimbursement, which will be accompanied by an

increase to the Charter School Tuition Assessment

and thus does not represent an increase in total

resources. Unrestricted General Government Aid and

Chapter 70 education aid are projected to remain level

between FY13 and FY14. A small increase in Chapter

70 education aid is projected in FY15. Other minor

state aid revenues are projected to be level as well.

Excises: Excises are expected to grow gradually in

FY14 and FY15 with growth across all major taxes

concurrent with a slowly recovering economy. No new

taxes or increases to tax rates have been assumed.

Fines: Fines are expected to increase marginally in

FY14 and FY15 due to an expected increase in

issuance of parking fines. No changes in fine rates or

enforcement have been assumed.

Other Revenue:

Interest on Investments: Interest income is expected

to increase marginally in FY14 with a slightly larger

increase projected in FY15 based on statements by

the Federal Reserve as to future action on interest

rates.

Payments in Lieu of Taxes (PILOT): PILOT revenue

is projected to increase as tax-exempt institutions

follow a 5-year ramp up of payments (beginning in

FY12) to meet the Mayor’s PILOT taskforce goal of

paying 25% of the property tax they would pay if they

were not exempt. Increases are projected for FY14

and FY15 based on the plan.

Miscellaneous Department Revenue: Usually

projected from historical trends and economic

assumptions, these revenues are expected to

increase only slightly after the expiration of certain

temporary revenues in FY13.

Licenses and Permits: Building permits are projected

to gain with a recovering economy and historically

low interest rates.

Budgetary Fund Balance: In FY13, the City is not

using an allocation of reserves to support funding for

OPEB liabilities, but instead is using recurring

revenues. For FY14 and FY15, the use of Budgetary

Fund Balance for OPEB expenses is projected to be

$40 million in each year.

These estimates are based on conservative revenue

assumptions that the local economy will stabilize at a

reasonable level of growth in the 24 to 36 months from

the beginning of FY13 to the ends of FY14 and FY15.

Expenditure Trends The following chart displays the allocation of

expenditures projected for FY13-FY15. (Figure 13.)

It is important to note that the multi-year expenditure

projections were developed with the assumption that

financial support for achieving the City’s goals of

quality education for all, safe streets, shared economic

recovery, and healthy, green neighborhoods will

continue. Early recognition of possible FY14 and

FY15 shortfalls, caused by carrying forward the costs

of current operations, allows the City’s administration

time to make the necessary adjustments and policy

decisions to get back to a balanced budget that

continues to support these goals.

Inflationary increases have been estimated in FY14

and FY15 for certain centrally budgeted expenditures

such as health insurance, Medicare and snow removal

and within departmental budgets for residential trash

collection, energy and equipment replacement. At the

School Department, estimated inflationary increases

for contracted educational and student transportation

services along with increased costs to serve special

education students will require significant increases

in FY14 and FY15. Of particular concern at the School

Department is the need to address the student

assignment process and its associated bus routing

costs prior to the expiration of the current

transportation contract at the end of FY13. New

requirements and increased demand for special

education services in the areas of early childhood and

autism are also creating significant expenditure

pressure.

$0.0B

$0.3B

$0.5B

$0.8B

$1.0B

$1.3B

$1.5B

$1.8B

$2.0B

$2.3B

$2.5B

$2.8B

$3.0B

FY13 FY14 FY15

Figure 13

ExpendituresFY13 Budget, FY14 & FY15 Projected

Other

PHC

Pensions

Debt Serv

State Asess

School Dept

City Depts

4 4 S u m m a r y B u d g e t

Citywide the cumulative growth in the reserve for

collective bargaining coupled with scheduled

departmental salary step increases will result in

increased personnel costs for FY14 and FY15. As

union negotiations move forward, it will be important

to quantify the impact of any material changes to the

collective bargaining wage pattern we have included

in these forecasts so that policy options and tradeoffs

can be presented to accommodate those impacts.

All of the factors referred to above are estimated to

increase total appropriations by $113.8 million or 5.7%

in FY14 and cumulatively increase appropriations by

$201.6 million or 10% in FY15.

Fixed Costs: In FY14, fixed costs are expected to

increase by $45.2 million or 10% and cumulatively

increase by $106.6 million or 23.5% in FY15. These

increases can be attributed to several factors

including; the continued expansion of Charter Schools

and the resulting increase in the tuition assessment;

an increase in debt due to the Dudley Square project;

and increasing pension costs. It should be noted that

when the pension schedule is updated for FY14 the

amount shown here will change.

Under these revenue and expenditure trend

assumptions, the FY14 budget is currently projected to

have a budget shortfall of approximately $28.4 million

and the FY15 budget is currently projected to have a

$61.6 million shortfall. For the most part, the

projections are based on current operations and any

known changes that are anticipated in FY14. As the

FY14 budget process goes forward and projections are

further refined, the City will be looking at ways to

operate more efficiently within the confines of

projected revenues. The City will be watching external

funding sources very closely prioritizing service areas

and reviewing policy decisions and options that may

result from external funding losses. Boston Public

Schools and the Department of Neighborhood

Development are two departments where federal

external funds play a crucial role in allowing them to

provide essential services. In the event of further

grant losses in those departments, major policy

decisions and/or tradeoffs will have to be made to

continue to provide those services.

Current year hiring must continue to be scrutinized

and controlled as the bulk of the projected increase in

appropriations is employee-related. As noted

previously, working in partnership with our unions,

progress has been made in the area of health

insurance. Despite this work and the positive impact it

had on FY13, premiums are expected to increase

substantially in FY14 and FY15 - although the base is

now lower than it would have been, “saving” the City a

significant amount. The City will continue to look at

ways to mitigate the impacts of annual increases in

the cost to provide health insurance to its employees

and retirees. A decision will need to be made on the

level of budgetary fund balance that may be utilized

prudently. The City’s policy regarding the use of its

fund balance has been to limit the use of this source of

revenue to offset certain fixed costs such as pension

contributions and related post-retirement health

benefits and/or to fund extraordinary and non-

recurring events as determined and certified by the

City Auditor. The projections shown here assume that

budgetary fund balance will be used to support the

OPEB appropriations for FY14 and FY15.

Planning a Balanced Budget Preparing a multi-year planning horizon is useful

because it provides time to make adjustments to

relieve the cost pressures on certain services. It also

promotes cost-saving or new programming alternatives

to improve the financial position projected in the out

years, and helps us to monitor changes in assumptions

as new needs or innovations present themselves.

Much of the City’s budget remains fairly stable during

the year, but variances of as little as 1% overall could

add up to a $25 million problem in the bottom line.

Common areas of variance are snow removal, with

year-to-year swings of millions of dollars; legal

settlements, for which the City attempts to reserve for

but may need to absorb on a pay-as-you-go basis;

public safety overtime, particularly if a significant

event occurs (acts of terrorism, natural disasters or

major public events, for example), and outside

funding sources for essential needs that may suddenly

be eliminated.

It is important to note that the City’s fiscal controls

are effective in reducing the chance for an

unmanageable deficit. Managing position vacancies

through a committee consisting of staff from the Office

of Human Resources, the Office of Budget

Management and the Office of Administration and

Finance ensures that the hiring of personnel is

justified and fits within the City’s fiscal parameters.

In addition, the City’s financial and human resources

information system (BAIS) provides levels of

systematic controls that can be used to project and

S u m m a r y B u d g e t 4 5

plan for personnel funding requirements. Similar

BAIS systematic controls are in place to control non-

personnel expenditures. (These non-personnel

spending controls were used in FY09 to mitigate the

impacts of mid-year State Aid reductions. At that

time, the City was able to restrict access to any

discretionary expenditure accounts and reduce other

spending accounts centrally.)

Conclusion This multi-year overview is provided as a guide to

understand the impacts of the decisions presented in

the budget, and to provide a framework for addressing

future challenges and initiatives. Although it is not

statutorily required, it is a useful tool in long-range

planning and policy analysis.

From a budget planning and management standpoint,

the parameters summarized here are being built

through an interactive forecast model. This approach

allows for the development of multi-year scenarios

based on various assumptions for City operations set

within the financial constraints of the City’s revenue

and fixed cost budgets.

4 6 S u m m a r y B u d g e t

FY13 FY14 FY15Adopted Forecast Forecast

REVENUESProperty Tax 1,675.10 1,741.98 1,815.53 Overlay Reserve (40.86) (42.49) (44.28) Excises 145.23 153.93 159.23 Fines 65.14 65.32 66.15 Interest On Investments 1.00 1.25 2.25 Payments in Lieu of Taxes 42.84 45.93 49.29 Urban Redev Chapter 121A 61.20 63.10 64.60 Department Revenue 52.59 54.69 55.18 Licenses & Permits 39.48 43.93 44.93 Penalties & Interest 8.81 8.41 8.41 Available Funds 15.00 17.98 17.95 State Aid 401.49 403.53 435.36

Total Recurring Revenue 2,467.01 2,557.56 2,674.57

Approp. Fund Balance 0.00 40.00 40.00Approp. Surplus Property Fund 0.00 0.00 0.00

Total Revenues 2,467.01 2,597.56 2,714.57

EXPENDITURESCity Departments 1,019.09 1,035.75 1,060.45 Public Health 66.21 67.07 68.71 School Department 857.83 921.00 946.15 Reserve for Collective Bargaining 30.12 63.20 99.57 OPEB 40.00 40.00 40.00

Total Appropriations 2,013.25 2,127.03 2,214.88

Pensions 136.98 147.35 157.39 Debt Service 137.55 156.27 167.73 State Assessments 174.58 191.41 231.37 Suffolk County Sheriff Dept 3.92 3.92 3.92 Reserve 0.73 - -

Total Fixed Costs 453.76 498.95 560.41

Total Expenditures 2,467.01 2,625.97 2,775.29

Surplus (Deficit) - (28.41) (60.72)

CITY OF BOSTONBUDGET SUMMARY

(Dollars in Millions)

Numbers may not add due to rounding

S u m m a r y B u d g e t 4 7

Technical Note

The City of Boston’s combined FY13 Budget and FY13-

FY17 Capital Plan was published using Microsoft

Word. Graphics were generated using Microsoft Excel.

Hyperion System 9 Planning and Scorecard and

Microsoft Access were used for data management and

analysis.

All production was done within the Office of Budget

Management. Technical development and support

was provided by Paul D. Parisi.

4 8 S u m m a r y B u d g e t